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HomeMy WebLinkAbout2020-04-21; City Council; Resolution 2020-064RESOLUTION NO. 2020-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE FISCAL YEAR 2020-25 FIVE YEAR CONSOLIDATED PLAN AND AUTHORIZING THE SUBMISSION OF THE CONSOLIDATED PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. Exhibit 1 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 serve principally 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 jurisdiction must adopt a five-year consolidated plan, which must be reviewed and approved by the Department of Housing and Urban Development; and WHEREAS, to assist in developing the Fiscal Year 2020-25 Five Year Consolidated Plan (Plan), the city engaged in an extensive community outreach program throughout the months of October and November 2019, to solicit input from residents, as well as the agencies that utilize Department of Housing and Urban Development (HUD) funds; and WHEREAS, on Nov. 14, 2019, staff presented to the Housing Commission the Plan process for review and comment. The Housing Commission expressed general support and concurrence with the city's outreach efforts; and WHEREAS, Jan. 14, 2019, staff presented the City Council with the outcome of the outreach efforts, and the City Council approved the priorities in the Plan; and WHEREAS, the draft Plan was released for a 30-day public review period which began on Mar. 9, 2020, and concluded with a City Council public hearing on April 7, 2020; and WHEREAS, public comments from the public review period and the public hearing have been addressed through written response and included in the Fiscal Year 2020-25 Five Year Consolidated Plan; and April 21, 2020 Item #1 Page 4 of 127 WHEREAS, the City Council of the City of Carlsbad, California has taken all testimony into account in considering the Plan for the period beginning July 1, 2020 and ending on June 30, 2025, as required for the city's CDBG program; 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. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the FY 2020-25 Consolidated Plan 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 FY 2020-25 Consolidated Plan as set forth in Attachment A 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 21st day of April, 2020, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Schumacher. None. None. MATT HALL, Mayor April 21, 2020 Item #1 Page 5 of 127 Fiscal Year 2020-2025 Consolidated Five Year Plan Carlsbad, CA Prepared By: Housing Services Division City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 {'cityof Carlsbad Attachment A April 21, 2020 Item #1 Page 6 of 127 DRAFT FY 2020-25 Five Year Consolidated Plan Executive Summary ES-05 Executive Summary – 24 CFR 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. This document is the city’s Consolidated Plan for Fiscal Years (FY) 2020-2025. The Consolidated Plan is a five-year planning document that identifies needs within low-to -moderate- income (LMI) communities and outlines how the city will address those needs. Ultimately, it guides investments in and helps achieve HUD’s mission of providing decent housing, suitable living environments, and expanded economic opportunities for LMI populations. Activities funded by HUD must meet at least one of these objectives. The City of Carlsbad is eligible for the Community Development Block Grant (CDBG) program through its submission of the Consolidated Plan: • Community Development Block Grants (CDBG) – CDBG is a flexible funding source used for both housing and non-housing activities, including neighborhood revitalization, workforce and economic development, community and nonprofit facilities, and infrastructure and public services in LMI communities. • HOME Investment Partnerships (HOME) – HOME is used for building, acquiring, and rehabilitating affordable housing for rent and homeownership. It may also be used for direct rental assistance to low-income residents. • Emergency Solutions Grants (ESG) – ESG funds programs and services supporting persons experiencing homelessness. This includes operating shelters, providing essential services to shelter residents, administering rapid rehousing programs, and homelessness prevention. • Housing Opportunities for Persons with AIDS (HOPWA) – HOPWA supports low-income people living with HIV/AIDS and their families by providing affordable housing opportunities. As a small city (114,622 residents as of 2018), Carlsbad directly receives only CDBG funding, but it utilizes HOME funding through the County of San Diego’s HOME Consortium. The HOME Investment Partnerships (HOME) program is a HUD funded program used for building, acquiring, and rehabilitating affordable housing for rent and ownership. HOME can also be used for direct rental assistance. (The HOME Consortium is comprised of the following cities: Vista, Carlsbad, Encinitas, La Mesa, San Marcos, and Santee. April 21, 2020 Item #1 Page 7 of 127 This Consolidated Plan covers CDBG and non-federal housing and community development resources. The city’s anticipated total allotment for the five-year period covered by the Consolidated Plan is $2,843,030. This Consolidated Plan is divided into five major parts: 1. The Process – summarizes the city’s efforts to engage Carlsbad residents and stakeholders and determine the community’s priorities; 2. Needs Assessment – identifies the priority needs of the city’s LMI population; 3. Housing Market Analysis – describes the economic environment in which the city will implement its programs; 4. Strategic Plan – establishes goals, policies and actions for addressing the needs of the community; and 5. Annual Action Plan – outlines the strategies and activities to achieve the Consolidated Plan goals. 2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview 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. The goals identified above address the uses of CDBG funds in Carlsbad and will be leveraged by other funding sources. April 21, 2020 Item #1 Page 8 of 127 3. Evaluation of past performance The city has successfully implemented housing, homelessness, and public facilities activities in the previous Consolidated Plan cycle, impacting the lives of thousands of 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 previous Consolidated Plan: • Acquisition of four affordable housing units • Approximately 323 Carlsbad residents served through fair housing services • Approximately 1,159 Carlsbad residents served through the homeless overnight shelter • Approximately 10,735 Carlsbad residents served through public services • Partnered with approximately 11 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 two community meetings, conducted a survey, and consulted with various organizational stakeholders including community planners, businesses, community advocates, and other city departments. A total of 214 survey responses were collected in English and Spanish. Community members were able to provide input during the development of the Consolidated Plan held from December 31, 2019 to January 14, 2020 and at the City Council meeting on January 14, 2020 through public comment. Additionally, the city provided members of the public a second opportunity to provide public comment on the overall draft Consolidated Plan held from March 9, 2020 to April 7, 2020, and at the City Council meeting on April 7, 2020. Across all events, input was received from XX individuals. These efforts are detailed further in The Process (page 5). 5. Summary of public comments Qualitative feedback on community needs was collected through community meetings, stakeholder consultations, a public comment period, and at formal public hearings. These comments provided insight into community needs and informed the goals of the Consolidated Plan. Top priority needs identified are affordable housing, housing and services related to homelessness and community services for low-income residents. Formal public comments were received at meetings of the City Council on January 14, 2020, and April 7, 2020. The first meeting was used to present preliminary findings and proposed Consolidated Plan goals to the City Council, and at the second meeting at which time the draft Consolidated Plan was available for public review and comment. This second City Council meeting followed a 30-day public comment period that took place March 9, 2020 to April 7, 2020. April 21, 2020 Item #1 Page 9 of 127 The comments received at public hearings and during the public comment period are provided in Attachment A. All public comments from the Consolidated Plan process are also included in “Attachment A. Citizen Comment and Public Notices.” 6. Summary of comments or views not accepted and the reasons for not accepting them All comments were accepted and incorporated into Attachment A. Citizen Comment and Public Notices. 7. Summary The city’s Consolidated Plan sets forth the housing and community development strategies and objectives for the five-year period of 2020-2025 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 Consolidated Plan process and expanding opportunities for its LMI populations to thrive. This Consolidated Plan and the associated community engagement process are indicative of that commitment. April 21, 2020 Item #1 Page 10 of 127 The Process PR-05 Lead & Responsible Agencies - 91.200(b) 1. Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Table PR-05: Responsible Agencies Agency Role Name Department/Agency CDBG Administrator CARLSBAD Community Development Department, Housing Services Division Narrative The City of Carlsbad, Housing Services Division in the Community Development 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 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 Nancy Melander Community Education and Grants Program Manager City of Carlsbad 1200 Carlsbad Village Drive, Carlsbad, CA 98008 760-434-2812 nancy.melander@carlsbadca.gov April 21, 2020 Item #1 Page 11 of 127 PR-10 Consultation - 91.100, 91.200(b), 91.215(l) 1. Introduction 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(I)). The City of Carlsbad has long communicated and collaborates with many governmental and non- governmental 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 non-governmental 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. During the community engagement process, the city consulted with these and other agencies and businesses at community meetings, through interviews and an online survey. 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 supports the Alliance for Regional Solutions (ARS), North County’s homelessness collaborative network, which works closely with the Regional Task Force on the Homeless (RTFH), San Diego County’s Continuum of Care (CoC). Coordinated activities include the annual Point-in-Time (PIT) count and services and shelters for those experiencing or at risk of homelessness. According to the 2019 PIT, a total of 161 individuals were found to be experiencing homelessness within the city. Of those, 59 were housed in emergency shelters and 102 were unsheltered. Below includes a table of the homelessness profile of these individuals: April 21, 2020 Item #1 Page 12 of 127 Table PR-10.01: Carlsbad Unsheltered Homelessness Profile Source: 2019 RTFH PIT ARS staff provided input on the most pressing needs as it pertains to homelessness. Additionally, its Bridge to Housing committee, comprised of service providers and stakeholders, provided feedback and informed the development of the Consolidated Plan. The city itself has developed a Homeless Response Plan, which contains four key strategies: • Preventing, reducing, and managing homelessness in Carlsbad • Supporting and building capacity within the city and community to address homelessness • Encouraging collaboration within the city, community partnerships, and residents • Retaining, protecting, and increasing the supply of housing Implementing these strategies and achieving the goals of the Homeless Response Plan is contingent upon close coordination with RTFH, ARS, and other agencies and organizations. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS The City of Carlsbad does not administer ESG funds; however, city staff did consult with RTFH and ARS in developing this Consolidated Plan. Additionally, the city does annually use a portion of its CDBG public service funds to assist agencies that serve the homeless and those at risk of becoming homeless. Homeless Profile % of Unsheltered Total Homeless Persons Homeless Chronically Homeless 45% 46 Vet eran 12% 12 Female 29% 28 Families 2% 2 Youth 5% 5 April 21, 2020 Item #1 Page 13 of 127 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities Table PR-10.02: Agencies, Groups, Organizations who Participated Organization Agency/Group/Organization What Section of the Plan was addressed by consultation? Briefly describe how the organization was consulted. What are the anticipated outcomes of the consultation or areas of improved coordination? 2-1-1 San Diego Community Information Exchange (CIE) Needs Assessment Housing Market Analysis Provided localized data to inform the Consolidated Plan. Alliance for Regional Solutions Homelessness collaborative Needs Assessment Interviewed staff, as well as solicited input from their Bridge to Housing committee. County of San Diego County government – Health and Human Services Agency, Housing and Community Development Services, Office of Emergency Services Needs Assessment Housing Market Analysis Consulted with various agencies at the county government to inform development of Consolidated Plan. Legal Aid Society of San Diego Fair housing legal service provider Needs Assessment Housing Market Analysis Interviewed staff about fair housing needs in San Diego North County. Carlsbad Housing Commission Board/Commission Needs Assessment Housing Market Analysis Stakeholder engagement meeting and input on the Consolidated Plan CDBG Citizens Advisory Committee Advisory Board Needs Assessment Continuous consultation Identify any Agency Types not consulted and provide rationale for not consulting No single agency or organization was purposely excluded from providing input on the Consolidated Plan. April 21, 2020 Item #1 Page 14 of 127 Other local/regional/state/federal planning efforts considered when preparing the Plan Table PR 15.03: 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? 2013-2021 Housing Element City of Carlsbad The Housing Element is the State-recognized strategy for addressing the city’s housing needs. This Consolidated Plan aligns with the goals of the Housing Element. Homeless Response Plan City of Carlsbad The strategies within the Homeless Response Plan aligns with the goals of this Consolidated Plan. Analysis of Impediments Study City of San Diego Provides insight into the Housing Needs, including Fair Housing, for the community. Strategies align with the Housing Needs and goals of this Consolidated Plan. Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) The city will work with other North County CDBG entitlement jurisdictions in the County of San Diego to address common needs. In addition, the city works with the County of San Diego and the other HOME Consortium members to provide for the community’s housing and community development needs. The State of California has recently bolstered its funding for housing and homelessness programs. For example, Senate Bill 2 (Atkins) creates a permanent source of funding for affordable housing and the Homeless Emergency Aid Program (HEAP) provided additional funding to Continuums of Care throughout the State. It is important that the city coordinate with local partners and stakeholders to best leverage potential new funding and resources. Narrative Please see above. April 21, 2020 Item #1 Page 15 of 127 PR-15 Citizen 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 During the Consolidated Plan development, the city held two community workshops. At the first meeting held on November 13, 2019 at the City Council Chamber, twelve (12) community members provided feedback on what they believed are Carlsbad’s most pressing community needs. At the second meeting on November 18 at the Carlsbad Senior Center, two (2) people attended. A total of 14 people participated in the two forums, an increase in participation from the previous Consolidated Plan cycle. Many meeting attendees were representatives of service providers and past CDBG subrecipients. Organizations that were represented are Legal Aid Society of San Diego, Women’s Resource Center, Meals on Wheels, Community Resource Center, Catholic Charities, Casa de Amparo, Best of Care, and Brothers Benno. The format of these meetings included two parts. First, a slideshow was presented that familiarized attendees with the Consolidated Plan and HUD entitlement programs. The presentation also provided a demographic and economic overview of the city. Second, attendees provided feedback on what they believe are the greatest needs of the community. The city collected feedback in two ways: a ‘dot voting’ exercise, in which residents placed dot stickers on a pre-populated poster to indicate their top community needs; and facilitated small group discussions at which comments on community needs were recorded on worksheets. An online survey addressing the Consolidated Plan and community needs was posted online as an additional method to collect community feedback. The survey was offered in both English and Spanish. There were 214 total responses to the survey, with 2 completed in Spanish, marking a 32 percent increase in overall survey responses from the previous Consolidated Plan. Most questions received between 164 and 214 responses. All survey data is included in Appendix B. Survey. Community feedback informed the goals contained in this Consolidated Plan, which were presented to City Council on January 14, 2020. An email and public notice announcing the 30-day public comment period was sent to community-based organizations, service clubs, and other interested groups. A public notice was printed in the San Diego Union Tribune newspaper ten days prior to the public hearing before the City Council on April 7, 2020. The draft Consolidated Plan were available on the city website, at the City Clerk’s Office, and at the Carlsbad Library. A second public notice was printed in the San Diego Tribune newspaper on April 12, 2020 prior to the City Council meeting on April 21, 2020 at which the Consolidated Plan was approved. April 21, 2020 Item #1 Page 16 of 127 Citizen Participation Outreach Table PR-15.01: Citizen Participation Outreach Mode of Outreach Target of Outreach Summary of response/attend ance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) Community meetings Non- targeted/broad community 14 Highest areas of need identified include affordable housing, housing and support for individuals experiencing homelessness, and community services. N/A Survey Non- targeted/broad community 214 total responses Affordable housing was identified as the highest area of need, followed by housing and services for those experiencing homelessness and then infrastructure N/A URL closed – survey in Appendix B. Survey Consultations Key stakeholders See Table 2. Interviewees provided input on community needs and challenges in North County San Diego. N/A Public comment period Non- targeted/broad community No responses from the general public N/A N/A CDBG Citizen Advisory Committee meeting Non- targeted/broad community N/A N/A N/A Public hearing Non- targeted/broad community No responses from the general public N/A N/A Carlsbad Housing Commission Non- targeted/broad community No feedback provided N/A N/A April 21, 2020 Item #1 Page 17 of 127 Needs Assessment NA-05 Overview Needs Assessment Overview The primary source of data used in this needs assessment are HUD Comprehensive Housing Affordability Strategy (CHAS) special tabulations created through the Census’ American Community Survey (ACS) that incorporate HUD-specified criteria relating to housing needs, HUD-defined income limits and household types. This needs analysis predominantly uses data drawn from ACS’ most recent data set (2012- 2016). The information contained in this section informs the preparation of City of Carlsbad’s housing and community development priorities and both five- and one- year investment strategies. The following data include basic information about households by income as well as the number of renters and homeowners who experience various types of housing distress at various income levels. The limited growth of personal and household income in recent years coupled with the byproducts of the great recession are driving increased levels of housing distress, often illustrated by heightened levels of cost burden – that is, households that pay more than 30 percent of their income on housing costs (rent or mortgage plus utilities). The following outlines income categories used in this report: • Area median income (AMI): o Extremely Low-income: 0-30 percent AMI o Very Low-income: 30-50 percent AMI o Low-income: 50-80 percent AMI o Moderate-income: 80-120 percent AMI o Median Income: 100 percent AMI • HUD adjusted median family incomes (HAMFI): o Extremely low-income: 0-30 percent HAMFI o Very low-income: 30-50 percent HAMFI o Low-income: 50-80 percent HAMFI o Middle-income: 80-100 percent HAMFI o Upper income 100 percent HAMFI and above Note: AMI and HAMFI are functionally the same when referring to lower-income populations. However, HUD uses HAMFI to determine Fair Market Rents, which guides eligibility for many of its programs including Housing Choice Vouchers (i.e. Section 8). AMI is an industry term used more generally, but often refers to income limits for income-restricted affordable housing. The use of each term is noted throughout the Consolidated Plan. The current income limits as used in this Consolidated Plan (2019) are as follows: April 21, 2020 Item #1 Page 18 of 127 Table NA-05.01: 2019 Area Median Income Area Median Income: $86,300 Income Level Number of Persons in Households 1 2 3 4 5 6 7 8 Extremely Low 22,250 25,700 28,900 32,100 34,700 37,250 39,850 43,430 Very Low 37,450 42,800 48,150 53,500 57,800 62,100 66,350 70,650 Low 59,950 68,500 77,050 85,600 92,450 99,300 106,150 113,000 Median 60,400 69,050 77,650 86,300 93,200 100,100 107,000 113,900 Moderate 72,500 82,850 93,200 103,550 111,850 120,100 128,400 136,700 Source: US Department of Housing and Community Development, 2019 According to ACS data, there are a total of 42,925 households in Carlsbad, of which 64 percent are owner households and 36 percent renter households. However, these figures vary according to income category. Table NA-05.02: Income Distribution Income Distribution Overview Owner Renter Total Owners Renters Household Income <= 30% HAMFI 2,185 2,330 4,515 8% 15% Household Income >30% to <=50% HAMFI 1,450 1,760 3,210 5% 11% Household Income >50% to <=80% HAMFI 2,550 2,270 4,820 9% 15% Household Income >80% to <=100% HAMFI 1,885 1,295 3,180 7% 8% Household Income >100% HAMFI 19,370 7,830 27,200 71% 51% Total 27,440 15,485 42,925 64% 36% Source: ACS 2012-2016 The table above shows that 41 percent of renter households are lower income (up to 80 percent AMI), but only 23 percent of owners are lower income. Overall, 29 percent of all households earn lower incomes. The total number of lower-income households has decreased by about 6 percent since the last Consolidated Plan (approximately 870 fewer lower income households than in 2015). Both owners and renters experience housing problems, but at differing rates. As described by HUD, the four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than one person per room, and cost burden greater than 30 percent. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. April 21, 2020 Item #1 Page 19 of 127 The following table indicates that 37 percent of all households have one of the four defined housing problems, but within the two tenure categories, renters have a higher rate of housing problems than owners (49 percent versus 30 percent, respectively). Table NA-05.03: Housing Problems Housing Problems Overview 1 Owner Renter Total Owners Renters Household has at least 1 of 4 Housing Problems 8,150 7,600 15,750 30% 49% Household has none of 4 Housing Problems 18,425 7,440 25,865 67% 48% Cost burden not available - no other problems 865 445 1,310 Total 27,440 15,485 42,925 Source: ACS 2012-2016 The four severe housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50 percent. The following table indicates that 18 percent of all households have one of the four defined severe housing problems; again, renters have a higher rate of severe housing problems than owners (26 percent versus 14 percent, respectively). Table NA-05.04: Severe Housing Problems Overview Severe Housing Problems Overview 2 Owner Renter Total Owners Renters Household has at least 1 of 4 Severe Housing Problems 3,765 3,960 7,725 14% 26% Household has none of 4 Severe Housing Problems 22,810 11,080 33,890 83% 72% Cost burden not available - no other problems 865 445 1,310 Total 27,440 15,485 42,925 Source: ACS 2012-2016 The following table breaks down the various levels of cost burden experienced by owner and renter households. Overall, it shows that 35 percent of all households have some amount of cost burden. However, cost burden is a greater problem for renter households: 46 percent of renter households have a cost burden, while 28 percent of owner households have a cost burden. Table NA-05.05: Housing Cost Burden Housing Cost Burden Overview 3 Owner Renter Total Owners Renters Cost Burden <=30% 18,730 7,820 26,550 68% 51% Cost Burden >30% to <=50% 4,490 3,920 8,410 16% 25% Cost Burden >50% 3,360 3,265 6,625 12% 21% Cost Burden not available 865 480 1,345 Total 27,440 15,485 42,925 Source: ACS 2012-2016 The next series of tables provides data on housing problems, by tenure and income category. April 21, 2020 Item #1 Page 20 of 127 Table NA-05.06: Housing Problems by Income Level, All Households Income by Housing Problems (Owners and Renters) Household has at least 1 of 4 Housing Problems Household has none of 4 Housing Problems Cost Burden not available - no other housing problems Total Of Households w/ Housing Problems Of Income Category Household Income <= 30% HAMFI 2,780 425 1,310 4,515 18% 62% Household Income >30% to <=50% HAMFI 2,525 685 0 3,210 16% 79% Household Income >50% to <=80% HAMFI 3,390 1,435 0 4,820 22% 70% Household Income >80% to <=100% HAMFI 2,030 1,150 0 3,180 13% 64% Household Income >100% HAMFI 5,030 22,170 0 27,200 32% 18% Total 15,750 25,865 1,310 42,925 Source: ACS 2012-2016 Table NA-05.07: Housing Problems, Renters Income by Housing Problems (Renters only) Household has at least 1 of 4 Housing Problems Household has none of 4 Housing Problems Cost Burden not available - no other housing problems Total Of Households w/ Housing Problems Of Income Category Household Income <= 30% HAMFI 1,710 175 445 2,330 23% 73% Household Income >30% to <=50% HAMFI 1,685 75 0 1,760 22% 96% Household Income >50% to <=80% HAMFI 1,910 360 0 2,270 25% 84% Household Income >80% to <=100% HAMFI 910 380 0 1,290 12% 70% Household Income >100% HAMFI 1,385 6,445 0 7,830 18% 18% Total 7,600 7,440 445 15,480 Source: ACS 2012-2016 April 21, 2020 Item #1 Page 21 of 127 Table NA-05.08 Housing Problems, Owners Income by Housing Problems (Owners only) Household has at least 1 of 4 Housing Problems Household has none of 4 Housing Problems Cost Burden not available - no other housing problems Total Of Households w/ Housing Problems Of Income Category Household Income <= 30% HAMFI 1,070 250 865 2,185 13% 49% Household Income >30% to <=50% HAMFI 840 610 0 1,450 10% 58% Household Income >50% to <=80% HAMFI 1,480 1,075 0 2,555 18% 58% Household Income >80% to <=100% HAMFI 1,120 770 0 1,890 14% 59% Household Income >100% HAMFI 3,645 15,725 0 19,370 45% 19% Total 8,150 18,425 865 27,450 Source: ACS 2012-2016 Together, these three tables show the total number of households with housing problems by income level, as well as disaggregated data for renter and owner households. Overall, 55 percent of lower- income households (earning less than 80 percent of AMI) have at least one of the four housing problems. When these data are disaggregated, it is clear that renter household have a greater experience with housing problems than owners. About 70 percent of lower-income renter households have one of four problems, while only 42 percent of lower-income owners do. However, regardless of tenure, the majority of lower income households experience one of the four housing problems. The following three tables compare one of these housing problems – cost burden – by tenure and income category. Table NA-05.09: Cost Burden by Income Level, All Households Income by Cost Burden (Owners and Renters) Cost burden > 30% Cost burden > 50% Total Of Households w/Cost Burden >30% Of Households w/Cost Burden >50% Of Income Category>30% Of Income Category >50% Household Income <= 30% HAMFI 1,070 250 1,320 13% 1% 49% 11% Household Income >30% to <=50% HAMFI 840 610 1,450 10% 3% 58% 42% Household Income >50% to <=80% HAMFI 1,480 1,075 2,555 18% 6% 58% 42% Household Income >80% to <=100% HAMFI 1,120 770 1,890 14% 4% 59% 41% Household Income >100% HAMFI 3,645 15,725 19,370 45% 85% 19% 81% Total 8,155 18,430 26,585 Source: ACS 2012-2016 April 21, 2020 Item #1 Page 22 of 127 Table NA-05.10: Cost Burden by Income Level, Renters Income by Cost Burden (Renters Only) Cost burden > 30% Cost burden > 50% Total Of Households w/Cost Burden >30% Of Households w/Cost Burden >50% Of Income Category>30% Of Income Category >50% Household Income <= 30% HAMFI 1,675 1,580 3,255 23% 48% 72% 68% Household Income >30% to <=50% HAMFI 1,670 950 2,620 23% 29% 95% 54% Household Income >50% to <=80% HAMFI 1,770 605 2,375 25% 19% 78% 27% Household Income >80% to <=100% HAMFI 910 40 950 13% 1% 70% 3% Household Income >100% HAMFI 1,160 90 1,250 16% 3% 15% 1% Total 7,185 3,265 10,450 Source: ACS 2012-2016 Table NA-05.11: Cost Burden by Income Level, Owners Income by Cost Burden (Owners Only) Cost burden > 30% Cost burden > 50% Total Of Households w/Cost Burden >30% Of Households w/Cost Burden >50% Of Income Category >30% Of Income Category >50% Household Income <= 30% HAMFI 1,075 990 2,065 14% 29% 49% 45% Household Income >30% to <=50% HAMFI 840 635 1,475 11% 19% 58% 44% Household Income >50% to <=80% HAMFI 1,435 910 2,345 18% 27% 56% 36% Household Income >80% to <=100% HAMFI 1,060 290 1,350 14% 9% 56% 15% Household Income >100% HAMFI 3,440 535 3,975 44% 16% 18% 3% Total 7,850 3,360 11,210 Source: ACS 2012-2016 The three tables above show the total number of households with either a cost burden above 30 percent of income or above 50 percent of income (severe cost burden) by income level. According to the first table, of households with a cost burden above 30 percent, 42 percent are in the lower income category (below 80 percent AMI). Of the 18,425 households with a severe cost burden, 85 percent are lower in moderate to above moderate income. The fact that higher income owners may also have cost burdens can be explained by a number of factors, such as homeowner seniors living on fixed incomes. April 21, 2020 Item #1 Page 23 of 127 2-1-1 San Diego Data 2-1-1 San Diego1 has collected a series of data points from clients residing in the city accessing its services during the 2018 calendar year. A total of 1,073 clients accessed services that resulted in more than 3,650 referrals to providers. General demographic information can be shown in the following graphic. Figure NA-05.01: Demographics Source: 2-1-1 San Diego, 2018 The largest age groups contacting 2-1-1 were persons aged 30-39 and 40-49; clients were disproportionately female, and the majority callers were individuals with no children. In addition, callers were disproportionately persons of color: while White/Caucasian persons represent 83 percent of Carlsbad’s total population, only 55 percent of callers where in that category. Further, Black/African American residents make up a little more than 1 percent of the overall population but comprised 5 1 In July 2000, the Federal Communications Commission (FCC) reserved the 211 dialing code for community information and referral services. The FCC intended the 211 code as an easy-to-remember and universally recognizable number that would enable a critical connection between individuals and families in need and the appropriate community-based organizations and government agencies. 2-1-1 San Diego is this region’s implementation of the 211 service. General Demographics Age Group Gender I dent!ity Woman 67% Man 3-3% Race/Ethnicity Alaska Native/ ative Indian 0_5% Asiall/ Pacific lsla'lilder-J Hawaiian 13% Ela ck/African American 15% ispanic/Lati'lilo -2:9% White/Caucasian -55% ~ 6Ng, ~ T. ~ ~ ~ ~ i Bi1-Racial/Mu[ti-Raciall 13% 4i .~, ~ Ln IP I' ~ ~ Other 15% ~=====================--,----~ '-------------L ___ ~-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_--" _"-_-_-_-_-_-_-_-_-_-_-_-_-_- Military/veteran Household Sitze Milil:aryfVetera'lil 45% ii ■ 5% 2% -0.9% ---1 2 3 4 5 6 7 0.1% 8 Nu1111ber of Ch illdr,en 44% wit h child ren 56% 15% ■ 7% 2 3 2% 0-4% 0.2% -4 5 6+ April 21, 2020 Item #1 Page 24 of 127 percent of inquiries. Similarly, persons who identify as Hispanic or Latino make up 13 percent of the population but represented 29 percent of callers. Figure NA-05.02: Socioeconomic Indicators Source: 2-1-1 San Diego, 2018 The table above shows that the majority of callers had at least some college education, but 36 percent reported being unemployed, with an additional 17 percent unable to work. In contrast, the State Employment Development Department estimates the local unemployment rate to be about 3 percent overall in Carlsbad. More than 70 percent of callers seeking assistance reported being extremely low income, earning less than 30 percent of AMI. Figure NA-05.03: Reason for Referral Source: 2-1-1 San Diego, 2018 Of the total 5,549 reported needs, the top two were housing-related, totaling 42 percent of reported needs. Following this category, income support and employment was the next highest need. Food insecurity is also a concern, with 215 clients assessed to need some form of nutritional support. Figure NA-05.04: Nutrition Referrals Soc1oeconom1c Indicators Education Employment 30% 30% Full-Time ■ 16% I ■■ Part-Time ■ 14% 10% Other Employment 14% ■ .... -Disabled /Unable to work ■ 17% ~8 i; l! g@ 2 ffl -:: a: r a: g.t .!9 S' 0 • 0 • :,: ~ !! i' • 2' • 2' Not in the laborfo~ce/ ■ 12% c,l! -6 ~ so ~o -6 0 ~o 2 ~ ~ Retired ~ V> " l~ &I ~ ~w Unemployed -36% ~ "' .II ii ,' If. Nt:~<.b by Bro de.It-') l (dl t>yor y i>ercent of total needs UtllitltS 11ous1ng h•o111~c::;.u1,1,iirl &F11,,'uy111.ml crtrr:111.11 Justlcc/L.cqJI 11ea th Care convnW1'ty a Government !;luldliou indMdual a ramlly ufe ;:::::====:::; C:c111~;111nu ~~1'1i1 ~s 1% TrJ n>;pu1l...1tio11 -"'6 M,1ksi,dGttod'i 1~,; ?ubllc 11.ealth & ~ty 0311, Frlu<ation Io~ Area Median Income 51-80% 81%or Mc,re 7% 1% 30%o•Less 73% April 21, 2020 Item #1 Page 25 of 127 Source: 2-1-1 San Diego, 2018 Of the 215 clients, 47 percent indicated they were often concerned food would run out, and 43 percent said they often actually ran out of food. The following chart shows that 91 clients reported themselves as homeless (approximately 42 percent); 84 percent of the clients assessed indicated an immediate need for housing within the month. Figure NA-05.05: Housing Referrals Source: 2-1-1 San Diego, 2018 Of those 227 clients with utility needs assessments, 27 percent reported having their utilities shut off, and 67 percent noted their utility bill represented more than 25 percent of their income. In total, 59 percent said their bill was past due. • Nutrition 215 tot al assessments 78%of clients with a nut ri:ion need had to meet other basic needs before t hey could pay for nut rition needs Concern Food Would Run Out During the last month, how often are clients concerned their food would run out? 47% 4096 13% -Never true Some ti mes true Often true A Housing 180 total assessments Food Actually Ran Out During the last mont h, how often did clients actually run out of food? 39% 43% 18% -Never true Sometimes true Often true 91 clients identif ied as homeless (sheltered, unsheltered, unspecified homeless) Type of Housing Sit uation Unsheltered Sheltered Homeless Unspecified I 1 % Institutional Housing I 0.5% Unstable Housing ■ 3% St<>blc Hou~ing Unknown Housing 13% 2096 22% Immediacy of Housing Need 43% 23% 18% 8% 8% Immediately This week This month Within a few 3or more months months April 21, 2020 Item #1 Page 26 of 127 Figure NA-05.06: Utility Referrals Source: 2-1-1 San Diego, 2018 The chart below shows the zip codes of the clients accessing 2-1-1 in Carlsbad: Figure NA-05.07: Referrals by Zip Code Source: 2-1-1 San Diego, 2018 f Utilities 227 total assessments 67%of clients with a utility need had a utility bill over 25% of their income Utility Bill Status Shutoff Past Due Payment Concerns 10% No Concern 4% Client s by Zip Code I Number of Clients by Zip Code Top Zip Codes CMLSBA0 ('2008) / "1 Cll~LSB;.0 (92009)/=2 CO.RLSBF.0 ('2010) / ;,3 CARLSBAD (920U)/"4 CC\RLSBAD (~2018) I ws 16 CO.RLSBA0 (92013)/"6 I 1 59% 331 April 21, 2020 Item #1 Page 27 of 127 2-1-1 Data: Domestic Violence The following statistics from 2-1-1 San Diego (2018) highlight the circumstances facing people – overwhelmingly women – who seek help because of domestic violence concerns. Although data are not available by individual jurisdiction, this County-wide portrait of clients helps frame the discussion on the needs of survivors of domestic violence. Figure NA-05.08: Domestic Violence Referrals - Demographics Source: 2-1-1 San Diego, 2018 Thirty-two percent of the 1,681 clients who contacted 2-1-1 for help were between the ages of 30 and 39, and 58 percent had children. Although Whites make up 64 percent of the population County-wide, only 26 percent of callers were White. In addition, while Black/African Americans constitute just over 5 percent of the population as a whole, they represent 17 percent of clients. Lastly, persons who identify as Hispanic represent 32 percent of the total population, but 42 percent of clients. The following chart shows that a slight majority of clients have at least some college education, but 53 percent reported being unemployed, and another 15 percent said they were unable to work. The fact that 90 percent of clients reported extremely low incomes illustrates the economic difficulties facing domestic violence survivors. General Demographics Age Group 3""' Gender Identity Race/Ethnicity Alaska Native/ Native Indian I 1~ Asian{Pacifie tslandef/Hawaiian 14% Black/African Atnetic.an -17% 0 ~ilii~~0= Hispartic/latino I ( 4216 Military/Veteran Household Size Militaty/Vetera.n 41~ .... .-.-""' 1 =, ... 11 i. ~ 0 ... 03'(,01% 03% 2345678910• White/Caucasian -26~ Bi·R&cial/ Multi·Racial ■ ~ O,he, '""' Number of Children 58% with children Nooe 1 2 3 • s •• April 21, 2020 Item #1 Page 28 of 127 Figure NA-05.09: Domestic Violence Referrals – Socioeconomic Indicators Source: 2-1-1 San Diego, 2018 The 1,681 clients had an average of 2.5 needs within the following broad categories: housing (61 percent), mental health and substance abuse disorder (26 percent) and criminal justice/legal assistance (12 percent). Figure NA-05.10: Domestic Violence Referrals – Client Needs Source: 2-1-1 San Diego, 2018 Of the 149 people who were assessed with nutrition needs, 83 percent had to meet other basic needs before they could pay for food. Fifty-six percent stated it was often true they had concerns that their food would run out, and 51 percent said their food actually ran out. Soc,oeconom,c Indicators Educat ion Employment Area Median Income 35'1> Full·TirM I 119t> S1·8~ 811'orMo,-e ill 2"' 0.4ib Part•TirM 1 1.0% "" "' Other Employment I 4it> --... -OiSabled / Ui"lable towOf'k 1 1516 fj a e t 5. • • "' . •• Ii !5, ~ 5, ls 5, Not in thelabof'Foree/ 1 ~ = .!: i .!: !.!: i.!: ~ s. Retired j z " • ~ iw m .. llnen-,plOyi!d -53% 30..or less 3 % I - Client Needs Total Needs: 4,251 Needs represen. the reasons or descriptions of the type of he!pthat was provided, and are document ed when cren.s rece·ve re-ferra s to community services. Thex needs are classif-:.ed using a !horough classif'<ation system that d·stin,gu·shesconcepts through a coded system, and puts those concepts into ah ·erarchical order. The first !eve I is the broad es! level, with up to six nested la ye.rs that progressive y increase in spec·fici'cy. There were4,251 tota. needs forth·s client population. reprexrrting 8unique c~rtegories of need. Needs by Broadest Cat egory Percentoftotal needs Housing Mental Healt h & Substance Use Disorder Criminal Justice/Legal lndMdual & Fam;ly life In• ,,,. April 21, 2020 Item #1 Page 29 of 127 Figure NA-05.11: Domestic Violence Referrals – Nutrition Needs Source: 2-1-1 San Diego, 2018 Of the 484 clients who identified as homeless, 34 percent said they currently had shelter, but 22 percent said they were unsheltered; 58 percent of the clients assessed also said they had an immediate need for housing, while an additional 37 percent said they needed housing within the month. Figure NA-05.12: Domestic Violence Referrals – Housing Needs Source: 2-1-1 San Diego, 2018 Utility costs for lower income households are often higher than they are able to pay. Of the 79 assessments made, 78 percent said their utility bills were more than 25 percent of their income. Twenty one percent said their utilities had been shut off, and 72 percent said they were past due on their payments. 6 Nutrition 149 total assessments 83% of clients w ith a nutrition need had to meet other basic needs before they could pay for nutrition needs Concern food Would Run Out During the last month, how often are clients concemecl their food 'h'OUld run out? sometimes true Often true Food Actually Ran Out Ouring thE last montn. howofu n did clients actually run out of food? ,.,. SOl"neti rnes true Otten true 484clients identified as homeless (sheltered, unsheltered, unspecified homeless) Type of Housing Situat ion Unsheltered Sheltered HomelessUM()e(ified I 1% Institutional Housing 1 2% Ui"lstable Housing • 4% Stable Housing Unknown Housing 34'6 12'1> Immediacy of Housi ng Need 5816 239' -14'6 -t.rnmediately This week Thismonth "" ,.. Within a few 3orrnore rnonthS ....... , April 21, 2020 Item #1 Page 30 of 127 Figure NA-05.13: Domestic Violence Referrals – Utility Needs Source: 2-1-1 San Diego, 2018 The following map shows the zip codes of domestic violence clients who reached out to 2-1-1 for information and referrals. f Ut ilities 79 total assessments 78%of clients with a ut ility need had a utility bill over 25% of their income Utility Bill Stat us Shut Off Past Dl.-e Payment concerns • 5% NoCOncern 72'16 April 21, 2020 Item #1 Page 31 of 127 Figure NA-05.14: Domestic Violence Referrals by Zip Code Source: 2-1-1 San Diego, 2018 Number of Clients by Zip Code Nu.m~ of Clients 1 Top Zip Codes SAN DIEGO, OOWNTOl'IN (92101)/ #l ELCAJJN(92020)/#2 SD, LOGA.N HEIGHTS (92113)/ #3 CHULA VISTA (91911)/#4 CHULA Vl:!.TA (91910)/#5 SPRING VALLEY (91977)/#6 SO, CITY HEIGHTS (92105)/ #7 SO, ENCAf\TO (92114)/#8 SAN DIEGO (92102)/ #9 SO, OTAY MESA (92154)/#10 84 April 21, 2020 Item #1 Page 32 of 127 NA-50 Non-Housing Community Development Needs - 91.415, 91.215 (f) Describe the jurisdiction’s need for Public Facilities: How were these needs determined? With a population over 100,000 people and continued growth, Carlsbad must provide a spectrum of services to address the public facilities needs in the community. Some of these include increasing access to facilities used by the Library & Cultural Arts department and ensuring those with special needs have appropriate access to facilities through American Disability Act (ADA) improvements. The expansion of parks and reaction, community facilities, and other improvements should be designed to allow LMI residents to utilize public facilities. In addition to these facilities, the community is responding to an increasing need to address homelessness, which may include providing public facilities such as emergency shelter and other housing solutions. The City of Carlsbad recognizes the need to provide public facilities for the low-income population and homeless population. And, supports the provision of housing accommodations to those most in need. Describe the jurisdiction’s need for Public Improvements: Those who responded to the Community Needs Survey through the Consolidated Plan process indicated the most critical community facility needs were healthcare facilities (36.6 percent of respondents), followed by community centers (36.5 percent) and parks and recreational facilities (30.5 percent). How were these needs determined? In 2013, the city prepared a Carlsbad Livable Streets Assessment Report. This report highlighted the need to increase safety features for walking between downtown parking and other area activities. Additionally, the city has natural barriers to community planning such as three lagoons, Interstate 5 (I-5) and railroad tracks, causing challenges to creating accessible connections throughout the city. Infrastructure was identified in the Community Needs Survey as a need within the community. Respondents indicated a desire for street/alley improvements (43.3 percent of respondents), followed by street lighting (41.5 percent), and broadband internet access (39 percent) as the most pressing community needs. Describe the jurisdiction’s need for Public Services: The community identified the following needs for public services through the Community Needs Survey: • Homeless shelters/services • Substance abuse services • Mental health services • Public transit and transportation services April 21, 2020 Item #1 Page 33 of 127 How were these needs determined? Public services needs were identified through multiple sources including City Council goals, community meetings, the Community Needs survey, and 211 data. Financial difficulties related to housing costs were the highest identified needs according to 211 data and these challenges can correlate to housing crisis which may lead to homelessness. Based on the needs analysis above, describe the State's needs in Colonias Not applicable. April 21, 2020 Item #1 Page 34 of 127 Housing Market Analysis MA-05 Overview Housing Market Analysis Overview: As of 2018, SANDAG estimates there are a total of 46,252 housing units in Carlsbad, an increase of about 4.6 percent since 2010. The break-down of units by type is as follows: Table MA-05.01: Total Housing Units Total 2010 Total 2018 % Increase/ (Decrease) Single Family- Detached 23,667 25,269 6.8% Single Family - Attached 6,042 6,383 5.6% Multifamily 13,221 13,283 0.5% Mobile Homes 1,299 1,317 1.4% 44,229 46,252 4.6% This shows that while the single-family housing stock (both detached and attached) increased significantly between 2000 and 2018, the number of both multifamily units and mobile homes increased only slightly during this period. As both of these types of housing offer dwellings that are typically more affordable, this loss is critical in the increasingly unaffordable housing environment. According to the Greater San Diego Association of Realtors, median home sales prices generally remained stagnant between 2018 and 2019, with only Encinitas showing a substantial increase of 15.2 percent in median sales price. Coronado experienced a drop of nearly 10 percent in sales prices. Table MA-05.02: Median Sale Prices URBAN COUNTY Jul-18 Jul-19 % Change Median Home Sales Price Median Home Sales Price Coronado $2,220,000 $2,000,000 -9.9 Del Mar $2,000,000 $2,000,000 0 Imperial Beach $599,000 $615,000 2.7 Lemon Grove $460,000 $473,500 2.9 Poway $785,000 $780,000 -0.6 Solana Beach $1,510,000 $1,572,030 4.1 Unincorporated $465,811 $447,044 -4.8 April 21, 2020 Item #1 Page 35 of 127 HOME Cities Jul-18 Jul-19 % Change Median Home Sales Price Median Home Sales Price Carlsbad $988,125 $980,456 -0.9 Encinitas $1,250,000 $1,440,221 15.2 La Mesa $635,000 $656,000 3.3 San Marcos $605,000 $600,000 -0.8 Santee $550,000 $545,000 -0.9 Vista $555,483 $550,592 -0.83 San Diego Region Jul-18 Jul-19 % Change Median Home Sales Price Median Home Sales Price $585,000 $585,000 0 Source: Greater San Diego Association of REALTORS, August 2019 The current median home price in Carlsbad is $980,456, which represents a slight decrease of less than 1 percent over the past year. According to the Greater San Diego Association of REALTORS, this is significantly less Encinitas, but substantially higher than the other HOME Consortium jurisdictions, as well as the San Diego region as a whole. A household must earn approximately $175,000 to afford the median home price in Carlsbad. According to the National Association of Homebuilders, San Diego is one of the ten least affordable metropolitan areas in the United States. Only about 20 percent of the homes in the areas are affordable to a household earning a median income. April 21, 2020 Item #1 Page 36 of 127 Table MA-05.03: Housing Opportunity Index by Affordability Rank Housing Opportunity Index: 3rd Quarter 2019 By Affordability Rank HOI 3rd Qtr 2019 2019 3rd Qtr 2019 3rd Qtr 2019 Metro Area Share of Homes Median Median Affordability Affordable for Family Sales Rank Median Income Income Price National Regional (000s) (000s) San Francisco-Redwood City-South San Francisco, CA ^^^ 8.4 133.8 1350 237 72 Los Angeles-Long Beach-Glendale, CA ^^^ 11.5 73.1 635 236 71 Salinas, CA 13.4 74.1 590 235 70 Anaheim-Santa Ana-Irvine, CA ^^^ 15.3 97.9 735 234 69 Santa Cruz-Watsonville, CA 17.9 98.0 753 233 68 San Jose-Sunnyvale-Santa Clara, CA 18.4 131.4 1003 232 67 San Diego-Carlsbad, CA 20.1 86.3 572 231 66 San Luis Obispo-Paso Robles-Arroyo Grande, CA 20.9 87.5 600 230 65 Napa, CA 22.3 100.4 655 229 64 Santa Rosa, CA 25.6 93.3 602 228 63 ^^^ Indicate Metropolitan Divisions. All others are Metropolitan Statistical Areas. The primary source of information on rental costs in the San Diego region is the Southern California Rental Housing Association, which conducts two surveys of rental properties per year. In the spring of 2019, 6,000 surveys were sent out to rental property owners and managers throughout San Diego County. Although this survey sampled a broad variety of rental housing, it was not a scientific sampling. Carlsbad’s current rental vacancy rate is estimated to be approximately 1.9 percent, with average rents as follows: Table MA-05.04: Average Rents Spring 2018 Spring 2019 % Increase/ (Decrease) Studio $1,081 $1,214 12.3% 1 Bedroom $1,635 $1,724 5.4% 2 Bedrooms $2,448 $2,546 4.0% 3+ Bedrooms $2,561 $2,937 14.7% Source: Southern California Rental Housing Association, 2019 Carlsbad’s housing stock is much newer on average compared to San Diego County’s housing stock, suggesting households may need to spend less on repairs and upgrades. Although the city incorporated more than 50 years ago, the majority of the housing in Carlsbad is fairly new, with a relatively small portion of the housing stock over 30 years old (approximately 3 percent). The majority (6 percent) of the city’s housing stock was constructed after 1980, including 21 percent that was constructed after 2000. To assist lower income homeowners in making necessary repairs, the city offers a Minor Home Repair Program for income-qualified homeowners. April 21, 2020 Item #1 Page 37 of 127 MA-45 Non-Housing Community Development Assets - 91.410, 91.210(f) Introduction According to the 2019 Carlsbad Business Report, the city has an estimated 5,353 businesses generating over $24.2 billion in overall sales in 2018. These firms employ about 82,000 workers that receive average annual earnings of $77,688. The number of jobs in the city has increased by about 2.8 percent between 2016 and 2018, which is about the same employment growth rate experienced by California over the same time period. The city is a significant hub of the San Diego region’s life sciences cluster, which is the second largest in the United States. The city is home to over 100 life science companies working in the field of medical devices, diagnostics and pharmaceutical companies supporting research and development. The 2019 Carlsbad Business Report found there has also been significant growth in the information & communications technology cluster, which experienced 8.5 percent employment growth from 2016 to 2018. The same report found Employment in Action Sports Manufacturing is over 37 times the national average, and clean tech employment is 3.6 times the national average. The largest industry cluster in Carlsbad is hospitality & tourism which employs nearly 14,000 people in the city catering to over 3.5 million annual visitors. Economic Development Market Analysis Business Activity Table MA-45.01: Business Activity Business by Sector Number of Workers Number of Jobs Share of Workers % Share of Jobs % Jobs less workers % Agriculture, Mining, Oil & Gas Extraction 405 134 1 0 -1 Arts, Entertainment, Accommodations 5,816 13,027 15 19 5 Construction 1,813 2,368 5 3 -1 Education and Health Care Services 5,537 6,446 14 9 -4 Finance, Insurance, and Real Estate 2,814 3,863 7 6 -1 Information 1,222 1,454 3 2 -1 Manufacturing 4,206 10,122 11 15 4 Other Services 1,593 2,720 4 4 0 Professional, Scientific, Management Services 6,512 9,853 16 14 -2 Public Administration 0 0 0 0 0 Retail Trade 4,091 7,607 10 11 1 Transportation and Warehousing 750 752 2 1 -1 Wholesale Trade 2,618 5,033 7 7 1 Total 37,377 63,379 -- -- -- Data Source: 2011-2015 ACS (Workers), 2015 Longitudinal Employer-Household Dynamics (Jobs) April 21, 2020 Item #1 Page 38 of 127 Labor Force Table MA-45.02: Labor Force Total Population in the Civilian Labor Force 55,345 Civilian Employed Population 16 years and over 51,400 Unemployment Rate 7.15 Unemployment Rate for Ages 16-24 13.97 Unemployment Rate for Ages 25-65 5.28 Data Source: 2011-2015 ACS Table MA-45.03: Occupations by Sector Occupations by Sector Number of People Management, business and financial 20,095 Farming, fisheries and forestry occupations 1,660 Service 4,065 Sales and office 12,715 Construction, extraction, maintenance and repair 1,870 Production, transportation and material moving 1,530 Data Source: 2011-2015 ACS Travel Time Table MA-45.04: Travel Time Travel Time Number Percentage < 30 Minutes 25,935 57% 30-59 Minutes 14,940 33% 60 or More Minutes 4,555 10% Total 45,430 100% Data Source: 2011-2015 ACS April 21, 2020 Item #1 Page 39 of 127 Education: Table MA-45.05: Educational Attainment by Employment Status (Population 16 and Older) Educational Attainment In Labor Force Civilian Employed Unemployed Not in Labor Force Less than high school graduate 1,435 240 585 High school graduate (includes equivalency) 3,950 590 1,790 Some college or Associate's degree 11,610 1,050 5,315 Bachelor's degree or higher 26,485 1,335 5,815 Data Source: 2011-2015 ACS Table MA-45.06: Educational Attainment by Age Educational Attainment Age 18–24 yrs 25–34 yrs 35–44 yrs 45–65 yrs 65+ yrs Less than 9th grade 75 60 330 635 515 9th to 12th grade, no diploma 595 335 390 510 489 High school graduate, GED, or alternative 1,795 1,565 1,265 3,500 2,745 Some college, no degree 3,180 2,435 2,230 6,920 3,810 Associate's degree 410 1,200 1,740 3,655 1,425 Bachelor's degree 1,100 4,435 6,040 9,890 4,095 Graduate or professional degree 20 2,355 3,865 7,370 4,175 Table MA-45.07: Educational Attainment – Median Earnings in the Past 12 Months Educational Attainment Median Earnings in the Past 12 Months Less than high school graduate 57,462 High school graduate (includes equivalency) 42,257 Some college or Associate's degree 67,929 Bachelor's degree 158,205 Graduate or professional degree 195,117 Data Source: 2011-2015 ACS Based on the Business Activity table above, what are the major employment sectors within your jurisdiction? Data Source: 2011-2015 ACS April 21, 2020 Item #1 Page 40 of 127 Table MA-45.01 on business activity indicates that the top industry sectors in which Carlsbad residents are employed are professional, scientific, and management services, administrative and waste management services, educational services, as well as health care and social assistance. There are also strong manufacturing, finance/insurance and retail/wholesale trade employment bases as well. The 2019 Carlsbad Business Report noted that professional and business services account for 22.1 percent of firms in Carlsbad, followed by retail/wholesale trade (16 percent). Healthcare accounts for 13 percent of all businesses in Carlsbad while finance, insurance, real estate and property management account for 12.6 percent of businesses and manufacturing accounts for 9.1 percent of businesses. However, there are more jobs in that sector than workers, meaning that workers are commuting into the city to work. This is also true in almost all sectors, suggesting an uneven jobs-housing balance. The table on travel time illustrates the commuting times for workers, which illustrates that perhaps 43 percent of workers commute away from Carlsbad. In terms of labor force, there is an overall unemployment rate of 7 percent in Carlsbad, based on ACS 2011-2015, the most recent data available from HUD. However, State Employment Development Department data from July 2019 suggests that the overall unemployment rate is closer to 3 percent. This reflects a fairly strong economy in the region overall. When looking at statistics based on educational attainment, it is apparent that the less education one has, the more likely the person is not participating in the labor force: for example, 26 percent of people over the age of 16 with less than a high school diploma are not participating in the labor force, whereas only 17 percent of people with a bachelor’s degree or higher are not in the labor force Carlsbad also compares favorably to California and the nation in terms of the community’s educational attainment. 33.8 percent of Carlsbad residents hold a bachelor’s degree compared to 20.8 percent of Californians and 19.4 percent of Americans. Similarly, 25.8 percent of Carlsbad residents hold a graduate or professional degree, more than double that of California (12.5 percent) and the U.S. (12.1 percent). The last table in this segment shows that the higher the education level a person has, the higher the income earned. For example, a person with a graduate or professional degree makes more than triple the amount of a person without a high school diploma. Carlsbad’s major industry clusters like life sciences, information & communications technology, and clean technology require these advanced degrees and can offer these high salaries and earnings. Describe the workforce and infrastructure needs of the business community: According to the 2019 Carlsbad Business Report, the business community cited dissatisfaction related to the regulatory climate (e.g., zoning, permitting, local regulations, and related issues) and ability to find qualified entry to mid-level employees, with some expressing dissatisfaction with the ability to recruit high skilled talent. The report also noted that larger firms generally have greater expectations for growth within the next 12 months (from 2019). For example, more than half of firms with between 25 and 49 employees felt that they would have more employees within the next 12 months. The report also captured what issues the business community would like the city to address. The top issues were altering zoning/regulations (17.9 percent), improving transportation/mobility (17.1 April 21, 2020 Item #1 Page 41 of 127 percent), and considering changes in tax structure (13.7 percent).The report found that new businesses in the city are increasingly attracted to not just the city’s quality of life, but also to its reputation as a hub for business and talent as well. Within Carlsbad, the city operates an economic development program and talent attraction and retention campaign called Life in Action, which provides information on the elements that make Carlsbad a desirable place to live and work. Information provided includes reasons to work in Carlsbad, local attractions, educational opportunities, transportation, and an overview of the unique lifestyle available in the community. Describe any major changes that may have an economic impact, such as planned local or regional public or private sector investments or initiatives that have affected or may affect job and business growth opportunities during the planning period. Describe any needs for workforce development, business support or infrastructure these changes may create. Carlsbad is a member of Innovate 78, a collaborative of five jurisdictions – Carlsbad, Escondido, Oceanside, San Marcos, and Vista – along the State Route 78 to boost economic prosperity. Innovate 78 lists resources available within each jurisdiction, analyzes economic data, and produces economic reports meant to better inform policymakers and the public regarding economic development. Through Innovate78, an initiative called Startup78 was launched to promote the growth and connectedness of the startup and entrepreneurial ecosystem in North County. The city also supports efforts to build up the tech ecosystem in Carlsbad and San Diego like San Diego Tech Hub. Hosted at Walmart Labs in Carlsbad, the mission is to create a flourishing San Diego Region tech community that is collaborative, diverse, and known for its positive impact on the regional economy and the community at large. San Diego Tech Hub facilitates opportunities to build authentic relationships between people, businesses, and community partners of the San Diego area. Monthly meetings attract over 200 attendees with several lines of programming to fulfill the mission. A Carlsbad City Council member currently serves on SANDAG’s Board of Directors, which gives the city a voice in regional initiatives and investments. The most significant effort SANDAG is working on is its 5 Big Moves, a long-term vision for a bold new transportation system throughout the County. The 5 Big Moves are: • Complete Corridors • Transit Leap • Mobility Hubs • Flexible Fleets • Next OS A redesigned and expansive regional transportation system will undoubtedly bring about economic impacts and effect the workforce and businesses. April 21, 2020 Item #1 Page 42 of 127 The city in partnership with SANDAG and NCTD recently launched a new pilot program called the Carlsbad Connector an app-based shuttle service which runs to and from the Carlsbad Poinsettia COASTER Station, connecting commuters to Carlsbad’s business parks and retail centers The city also partnered with Bio, Tech, and Beyond to provide low cost laboratory space and shared resources for individuals to start a science company, as well as foster a community of entrepreneurs. It is North San Diego County’s Life Science Incubator and adds to the city’s core technology base. As of 2020, the Bio, Tech and Beyond incubated over 55 companies and has since moved out of their city- owned space due to demand and expansion. How do the skills and education of the current workforce correspond to employment opportunities in the jurisdiction? In reviewing the city’s Business Activity data (Table MA-45.01.), surpluses in jobs are available locally in the Retail Trade, Manufacturing, and Arts/Entertainment/Accommodations sectors. The city anticipates future growth in these areas would focus on professional jobs, not factory jobs. The city’s labor force tends to be well educated and aligns well with the city’s projection for job growth especially in the high tech industry clusters. However, the tourism/hotel industries generally employ a significant number of lower wage employees with lower education levels. Currently, most of these workers do not reside in the city, given the high costs of housing in Carlsbad. The city will continue to face the challenge of providing affordable housing for the lower income households. Describe any current workforce training initiatives, including those supported by Workforce Investment Boards, community colleges and other organizations. Describe how these efforts will support the jurisdiction's Consolidated Plan. The San Diego Workforce Partnership (SDWP) is a regional non-profit organization that coordinates job training programs throughout the County that empower job seekers to meet the current and future workforce needs of employers. The SDWP has five strategic pillars: inclusive business growth, job quality, outcomes-focused funding, population-specific interventions, and 2Gen (multigenerational professional services). These pillars allow SDWP to focus on the region’s priority sectors: • Advanced manufacturing • Energy, construction, and utilities • Education and human development • Healthcare • Information and communication technologies and digital media • Life sciences and biotechnology • Public administration To meet the workforce needs for these sectors, SDWP offers prospective employees career consulting, education and training, paid work experience, access to networks and job leads, and career search tools April 21, 2020 Item #1 Page 43 of 127 and workshops. SDWP also conducts regional planning and research and convenes industry stakeholders. The city also partners with MiraCosta College, hosting the MiraCosta Technology Career Institute at a city-owned building. MiraCosta Technology Career Institute (TCI) offers local community members the opportunity to enhance their lives and their careers with low-cost classes, workshops and programs. From enrichment classes to job training programs, all MiraCosta TCI’s programs and classes are fee- based and not-for-credit. MiraCosta TCI’s fast track training programs offer students a place to start and learn new skills to advance their careers and to help find meaningful employment in our local businesses. The institute provides job training in the fields of advanced manufacturing, engineering, healthcare, security, veterinary science and professional skills training. Many Carlsbad employers partner with MiraCosta TCI to train future employees for specialized skills needed on the job. Lastly, the city supports the San Diego North Economic Development Council’s North County Manufacturing and Engineering Day held in October during the nationwide Manufacturing Week. Held at California State University, San Marcos, the expo shows off careers in manufacturing, science and engineering to over 1,000 North County high school and middle school students. Does your jurisdiction participate in a Comprehensive Economic Development Strategy (CEDS)? The city does not participate in a CEDS. If so, what economic development initiatives are you undertaking that may be coordinated with the Consolidated Plan? If not, describe other local/regional plans or initiatives that impact economic growth. See discussions above. Discussion April 21, 2020 Item #1 Page 44 of 127 MA-50 Needs and Market Analysis Discussion Are there areas where households with multiple housing problems are concentrated? (include a definition of "concentration") The four major housing problems recognized by HUD are a lack of complete kitchen facilities, a lack complete plumbing facility, more than one occupant per room (overcrowding), and cost burden greater than 30 percent. Severe housing problems include more than 1.5 occupants per room and a cost burden greater than 50 percent. Below is a map indicating census tracts with a concentration of any of the four severe housing problems. Figure MA-50.01: Percentage of Low-Income Households with Any of the Four Severe Housing Problems Source: HUD CPD 1 cean Pacifico Map legend % of LI Households With Any of 4 Severe Housing Problems D o.38.54% D 38.54-53.93% D 53.93-67.07% D 67.07.80.70% ~ >80.70% April 21, 2020 Item #1 Page 45 of 127 Figure MA-50.02: Percentage of Low-Income Households with Severe Cost Burden Source: HUD CPD The maps above demonstrate a correlation between census tracts with a concentration of households with any four severe housing problems and the percent of low-income households with severe cost burden. These census tracts are in a variety of locations throughout the city. As noted in NA-05, housing cost burden is the cost of contract rent and utilities and it has been found that low-income households are more likely to experience housing cost burden any four of the sever housing problems within the city. Are there any areas in the jurisdiction where racial or ethnic minorities or low-income families are concentrated? (include a definition of "concentration") A census tract having a concentration of racial or ethnic minorities or low-income families mean the population share of a race or ethnicity within a census tract is 10 percent or greater than its share within the jurisdiction as a whole. For example, people of Hispanic/Latino ethnicity comprise 13.6 percent of the population in Carlsbad. If within a census tract that population is at least 23.6 percent, then there is a concentration within that consensus tract. Ocean mo Pacifico Map Legend % of LI Households With Severe Cost Burden D 0-32.79% D 32.79-47.89% D 47.89-61.36% D 61.36-76.98% ... >76.98% April 21, 2020 Item #1 Page 46 of 127 The map below depicts the non-white percentage of the population in each census tract in the city. Whites comprise approximately 73 percent of the city’s population, so a census tract with a percentage of non-white population greater than 17 percent would indicate a concentration of racial or ethnic minorities. These tracts are represented in darker shades of pink. Figure MA-50.03: Non-white population (in percent) by census tract Source: Opportunity Atlas The tracts with a higher concentration of non-white populations are located throughout the city. The map below shows a correlation between the census tracts with a higher concentration of non-white populations and the census tracts have a concentration of extremely low-income households. April 21, 2020 Item #1 Page 47 of 127 Figure MA-50.04: Concentration of Extremely Low-Income Households by Census Tracts Source: HUD CPD What are the characteristics of the market in these areas/neighborhoods? The census tract representing downtown Carlsbad, in the northwest region of the city, has relatively high concentrations of ELI and LI households, housing problems, and non-white population. According to HUD’s Office of Community Planning and Development, it has the highest concentration of poverty in the city at 17.55 percent, as well as one of the highest concentrations of rental housing built before 1980 (72.43 percent). Are there any community assets in these areas/neighborhoods? This area is home to Carlsbad Village, which hosts multiple shops, restaurants, and hotels. It also has close proximity to the ocean. Carlsbad Village is one of the city’s major tourist attractions. The Carlsbad Village Association is a nonprofit with the purpose to promote and enhance the business, cultural, and community vitality of the area, making it a premier destination in North County San Diego. They host a weekly farmers’ market and free community events. co Ma1> legend % Extreme l ow Income Households D 0-8.47% D 8.47-15.77% D 15.77-25.18% D 25.18-38.75% ~ >38.75% April 21, 2020 Item #1 Page 48 of 127 Are there other strategic opportunities in any of these areas? One of the city’s goals identified within this Consolidated Plan is pertains to infrastructure and facilities. Many of block groups within this census tract have been identified as CDBG qualified block groups for those types of projects. Therefore, during the annual funding process, the city can allocate CDBG funding to public facility and infrastructure improvement project. April 21, 2020 Item #1 Page 49 of 127 MA-60 Broadband Needs of Housing occupied by Low- and Moderate-Income Households - 91.210(a)(4), 91.310(a)(2) Describe the need for broadband wiring and connections for households, including low- and moderate-income households and neighborhoods. As of 2018, entitlement jurisdictions must account for narrowing the digital divide. To do so, the city consulted with 211 San Diego, the region’s community information exchange, to understand the efforts throughout San Diego County to narrow the digital divide and bring broadband internet service to a broader swath of the population, especially LMI communities. To address the digital divide, the city included a question in its community needs survey that asked residents their most critical infrastructure needs. Approximately 39.93 percent of respondents felt increasing access to broadband internet is a priority need. 211 received calls from 1,020 clients regarding low-cost internet service providers countywide in 2018. Most commonly these clients were referred to ACCESS from AT&T (ACCESS), San Diego Gas and Electric Company (SDG&E), or Cox Connect2Compete (C2C). ACCESS is a low-cost internet service available to residents who participate in the Supplemental Nutrition Assistance Program or receives Supplemental Security Income benefits. SDG&E offers a program called California Alternate Rates for Energy, which offers a 30 percent monthly bill discount based on income limits. Cox C2C is a low-cost internet service available to households with children in grades K-12 that participate in the Supplemental Nutrition Assistance Program, the National School Lunch Program, Temporary Assistance for Needy Families, use Tenant-Based or Project-Based Vouchers, use Section 8 Rental Assistance, or live in public housing. Computers2Kids, a local organization, has partnered with Cox Connect2Compete to help narrow the digital divide by distributing computers to low-income families and include computer and internet literacy training. Of the families who participated in the program, 90 percent of students saw increased test scores. In addition, County libraries prove access to both computers and internet for free and are located throughout the County, including Carlsbad Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction. HUD guidelines require all Consolidated Plans to include a discussion on the broadband needs of the jurisdiction and the prevalence of the digital divide, defined as the gap between households with access to computers and internet on a regular basis and those who do not. In drafting the Consolidated Plan, the city used data from the Federal Communications Commission (FCC) regarding the number of broadband internet service providers in city and the US Census Bureau’s American Community Survey to determine the number of households with and without internet access. Below is a map showing the city’s access to providers offering broadband services. To be considered broadband, a provider must offer speeds of 25Mbps download and 3Mbps upload. April 21, 2020 Item #1 Page 50 of 127 Figure MA-60.1: Access to Broadband Provider Options Source: Fixed Broadband Deployment, Federal Communications Commission (FCC), 2020 Table MA-60.1: Percent of Population with Broadband Provider Access San Diego County Carlsbad Encinitas Oceanside California Nation-wide No providers 0% 0% 0% 0% 0% .06% 1+ providers 100% 100% 100% 100% 100% 99.9% 2+ providers 100% 100% 100% 100% 100% 99.7% 3+ providers 97.83% 99.93% 99.79% 97.77% 98.13% 93.4% Source: Fixed Broadband Deployment, Federal Communications Commission (FCC), 2020 Most residents in the city and San Diego County have access to three or more broadband internet providers. This is significant as multiple providers drives competition in the broadband market and pushes rates lower, therefore making them more affordable to LMI households. Number of Fixed Residential Broadband Providers a 3 4 12 or more April 21, 2020 Item #1 Page 51 of 127 MA-65 Hazard Mitigation – 91.210(a)(5), 91310(a)(3) Describe the jurisdiction’s increased natural hazard risks associated with climate change. A growing hazard in California in the era of climate change is more intense and more frequent wildfires. In response, the County’s Chief Administrative Officer established a Resilience Review Working Group to develop recommendations to reduce wildfire risk and strengthen community resilience. As for increasing resilience to natural hazards more generally, the city relies on the County’s Office of Emergency Services, with which it consulted during the development of the Consolidated Plan, to coordinate preparation for and responses to disasters. Additionally, as a coastal community, Carlsbad must be cognizant of coastal flooding and the inundation risk associated with sea level rise, which may result in greater frequency of major storm events. The city’s Sea Level Rise Vulnerability Assessment has identified areas on the coast and near lagoons that are most susceptible to damage and sea level rise and project potential hazards through 2050 and 20100. This includes possible “adaptation strategies” to help prevent future coastal flooding and erosion. The city has also drafted an update to its Local Coastal Program Land Use Plan, which addresses coastal hazards such as sea level rise, flood, geologic, and fire. Its multi-jurisdictional Hazard Mitigation Plan outlines goals, objectives, and actions to mitigate the effects of natural hazards. Additionally, the city’s General Plan Public Safety Element identifies the risks posed by hazards in the Carlsbad region and contains goals and policies to reduce these risks while integrating mitigation measures into the city’s development process. Describe the vulnerability to these risks of housing occupied by low- and moderate-income households based on an analysis of data, findings, and methods. The County of San Diego provides leadership and oversight to the region’s natural hazards. To further the County’s focus on natural hazards, its 2019-2024 Strategic Plan highlighted many preparedness and resiliency elements, including the Fire Safety Council of San Diego County, Community Wildfire Protection Plans, Community Emergency Response Teams, San Diego County Spontaneous Volunteer Program, and the Neighborhood Evacuation Team Program. The city participates in these efforts should a natural disaster impact its jurisdiction. Carlsbad participates in the Multi-Jurisdictional Hazard Mitigation Strategy, which includes reviewing a set of jurisdictional-level hazard maps and identifying the top hazard threats, including the potential exposure to all residential buildings. The Office of Emergency Services, housed at the County, also significantly contributes to resiliency to natural hazards. Its Emergency Operations Center (EOC) is a centralized location for multi-agency and multi-jurisdiction response to disasters. In an emergency, the EOC serves as the liaison between local jurisdictions, such as the city, in San Diego County and emergency services at the State and federal levels. April 21, 2020 Item #1 Page 52 of 127 Strategic Plan SP-05 Overview Strategic Plan Overview The Strategic Plan outlines the strategies and policies with which the city plans to address the issues and opportunities presented in the Needs Assessment and Market Analysis. Ultimately, the Strategic Plan will help achieve the city’s Consolidated Plan goal by guiding investments in Carlsbad’s LMI communities. The priorities for the 2020-2025 Consolidated Plan cycle are: • 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 goals, and the funded activities meant to achieve them, align with HUD’s approaches to developing viable communities: (1) providing decent housing; (2) providing a suitable living environment; and (3) expanding economic opportunity. April 21, 2020 Item #1 Page 53 of 127 SP-10 Geographic Priorities - 91.415, 91.215(a)(1) Geographic Area Table 1 - Geographic Priority Areas Not applicable. General Allocation Priorities As a relatively small jurisdiction, the city will not be allocating funding on a geographic basis. Funding will be provided to activities and programs based on quality and quantity of applications, as well as their alignment with the Consolidated Plan’s priorities and goals. However, some activities must occur within CDBG-eligible block groups. The map below shows the LMI block groups (bounded in blue and highlighted in yellow) in Carlsbad that are eligible for place based CDBG activities. Communities with no or very few areas in which 51 percent of residents are LMI have been authorized as Exception Grantees by HUD and are able to undertake area benefit activities. According to HUD, “ Section 105(c)(2)(A)(ii) of the Housing and Community Development Act of 1974, as amended, states that an activity shall be considered to principally benefit low and moderate income persons when ‘the area served by such activity is within the highest quartile of all areas within the jurisdiction of such city or county in terms of the degree of concentration of persons of low and moderate income.“ 2 The map on the following page was developed utilizing the minimum percentage of low- and moderate- income persons that must reside in the service area as provided by HUD and based on the 2011-2015 American Community Survey (ACS). 2 https://www.hudexchange.info/programs/acs-low-mod-summary-data/acs-low-mod-summary-data-exception-grantees/ April 21, 2020 Item #1 Page 54 of 127 Figure SP-10.01: LMI Block Groups Source: City of Carlsbad See Attachment C for larger image. r--, Ji:>% or Grear er Low• bloderar~ L......J Nicome Bioc.k Gtcups (2015) C:J census »acrs HG.03 c:::::J Census Bbc.ks n C:J Parce,'S ~ 17'-.01 1:'7.02 1'5.04 ENCINITAS 171.08 April 21, 2020 Item #1 Page 55 of 127 SP-25 Priority Needs - 91.415, 91.215(a)(2) Priority Needs Table SP-25.01: Priority Needs Summary 1 Priority Need Name Affordable Housing Priority Level High Description Provide housing opportunities to low income residents throughout the city through the acquisition, preservation, and creation of affordable housing. Population Extremely Low Low Moderate Middle Target Area Citywide Associated Goals Increase and preserve affordable housing opportunities for low income households. Basis for Relative Priority Affordable housing emerged as a top priority among residents through the Consolidated Plan community engagement process. According to NA-05, the majority of low-income renters are experiencing housing cost burden. The city will continue to face the challenge of providing affordable housing for the lower- income households. 2 Name Shelters and services for the homeless Priority Level High Description Provide shelter or services to homeless or near homeless persons/families which result in an improved situation through employment, permanent, supportive, or transitional housing, treatment of mental, or substance abuse problems, etc. Population Extremely Low Low Moderate Middle Large Families Families with Children Elderly Chronic Homelessness Individuals Mentally Ill April 21, 2020 Item #1 Page 56 of 127 Chronic Substance Abuse Veterans Victims of Domestic Violence Unaccompanied Youth Frail Elderly Persons with Mental Disabilities Persons with Physical Disabilities Persons with Developmental Disabilities Target Area Citywide Associated Goals Prevent and reduce homelessness. Basis for Relative Priority Community Needs Survey and stakeholder input. Homelessness is a major problem throughout San Diego County and residents and stakeholders in Carlsbad recognize the need to address it. 3 Name Public services for LMI and special needs populations Priority Level Medium Description Support the provision of services to Carlsbad LMI residents and special needs populations, including those with mental health needs, the elderly, and unaccompanied youth. Population Extremely Low Low Moderate Middle Large Families Elderly Chronic Homelessness Individuals Families with Children Mentally Ill Chronic Substance Abuse Veterans Victims of Domestic Violence Unaccompanied Youth Frail Elderly Persons with Mental Disabilities Persons with Physical Disabilities Persons with Developmental Disabilities Victims of Domestic Violence April 21, 2020 Item #1 Page 57 of 127 Target Area Citywide Associated Goals Strengthen support services for lower income residents and residents with special needs. Basis for Relative Priority Community Needs Survey, stakeholder feedback, and demographic data. 4 Name Public Improvements Priority Level Low Description Provide assistance to projects that benefit LMI households by improving or creating public facilities that serve their needs. Population Extremely Low Low Moderate Middle Large Families Families with Children Elderly Frail Elderly Persons with Mental Disabilities Persons with Physical Disabilities Persons with Developmental Disabilities Target Area CDBG-eligible block groups and nonprofit agencies that serve LMI residents. Associated Goals Improve and provide facilities to serve lower income persons. Basis for Relative Priority As a community of over 110,000, Carlsbad must provide a range of public facilities and improvements to serve its residents. Construction, expansion, and improvement of community facilities to serve the lower-income residents and those with special needs have been identified as an important objective of the CDBG program. Specifically, ADA improvements and renovation/expansion to parks and recreation, and community facilities are needed to better serve the city’s lower-income residents and those with special needs. 5 Name Fair Housing Priority Level High Description Carlsbad contracts with a qualified service provider to provide fair housing services in the city. Services are directed at promoting housing opportunities April 21, 2020 Item #1 Page 58 of 127 for all persons regardless of their special characteristics protected under State and Federal fair housing laws. Population Extremely Low Low Moderate Middle Target Area Citywide Associated Goals Provide fair housing services to residents. Basis for Relative Priority Fair housing services are mandated by CDBG regulations and are made available to residents citywide. 6 Name Planning and Administration Priority Level Low Description Up to 20 percent of the CDBG funds will be used to support the general administration of the programs by the Housing and Neighborhood Services Department. Population Other Target Area Associated Goals Plan and administer the CDBG program. Basis for Relative Priority Compliance with all HUD Consolidated Plan and CDBG program regulations is a requirement for participation in this program. Narrative (Optional) April 21, 2020 Item #1 Page 59 of 127 SP-35 Anticipated Resources - 91.420(b), 91.215(a)(4), 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 • 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 April 21, 2020 Item #1 Page 60 of 127 Anticipated Resources Table SP-25.01: Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of Consolidated Plan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG Public federal Admin Public Services Facility Improvements Acquisition $536,604 $367,353 $903,957 $1,939,073 The estimated amount of CDBG funds available for the five years covering the Consolidated Plan is $2,843,030 Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied While CDBG program does not require matching funds, CDBG funds offer excellent opportunities to leverage private, local, state, and other federal funds to allow for the provision of public service activities. For example, many State housing programs have scoring criteria that reward applicants who have matching funds. In the past, Carlsbad has been extremely successful in garnering matching infrastructure and transportation funds and it will continue to seek such opportunities in the future, especially through SANDAG’s Transnet fund. If appropriate, describe publicly owned land or property located within the state 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 January 2019, Governor Gavin Newsom issued an Executive Order directing State agencies to inventory and assess surplus State properties for their development potential. Unfortunately, the State owns just seven surplus properties, resulting in 25 total acres, April 21, 2020 Item #1 Page 61 of 127 in San Diego County (none are in Carlsbad). For its part, the city regularly reviews its real estate portfolio and assesses if properties are being put to best use. However, no city-owned land is expected to be used. Discussion April 21, 2020 Item #1 Page 62 of 127 SP-40 Institutional Delivery Structure - 91.415, 91.215(k) Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions. Table SP-40.01: Institutional Delivery Structure Responsible Entity Responsible Entity Type Role Geographic Area Served CARLSBAD Government Economic Development Homelessness Non-homeless special needs Planning Rental Neighborhood improvements Public facilities Public services Jurisdiction Carlsbad Housing Agency PHA Rental Jurisdiction Assess of Strengths and Gaps in the Institutional Delivery System While only a few entities have formal roles in administering HUD’s entitlement programs, the city as the lead CDBG agency must work with a host of stakeholders to coordinate activities and achieve the goals of the Consolidated Plan. While the Housing Services Division is the lead agency for CDBG activities, they coordinate with other city departments, various government agencies, businesses, nonprofit organizations, service providers, sub-recipients, and more. Continuous communication and coordination are essential, especially as new resources become available and new challenges emerge. The city administers its own public housing authority, leading to administrative efficiencies and coordinated activities to address community needs. The Housing Authority oversees Section 8 Housing Choice Voucher program. While the Housing Services Division maintains 21 affordable housing apartment complexes throughout the city to address the affordable housing needs. The primary gap in the institutional delivery system is rooted in the high cost of living in Carlsbad. With limited resources at all levels of government, it is difficult to fully address all the city’s housing and community development needs. For example, there is a significantly long waitlist for city’s rental assistance vouchers. In the absence of additional resources, the city must work with its existing partners to fill gaps where necessary. April 21, 2020 Item #1 Page 63 of 127 Availability of services targeted to homeless persons and persons with HIV and mainstream services Table SP-40.02: Homeless Prevention Services Summary Homelessness Prevention Services Available in the Community Targeted to Homeless Targeted to People with HIV Homelessness Prevention Services Counseling/Advocacy X X Legal Assistance X Mortgage Assistance X Rental Assistance X X Utilities Assistance X Street Outreach Services Law Enforcement X X Mobile Clinics Other Street Outreach Services X X Supportive Services Alcohol & Drug Abuse X X Child Care X Education X Employment and Employment Training X X Healthcare X X HIV/AIDS Life Skills X X Mental Health Counseling X X Transportation X Other Other Describe how the service delivery system including, but not limited to, the services listed above meet the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) Regarding homelessness, chronic homeless, and homeless prevention, the city will continue to work with homeless service providers to access resource so they can continue to provide shelter, services, and housing to its homeless and at-risk clients. The city works closely with Regional Task Force on the Homeless, the region’s Continuum of Care, on a regional strategy to provide services and end homelessness and participates annually in the Point-In-Time Count. The city has provided funding in the past to Catholic Charities, Interfaith Community Services, Brother Benno’s, Community Resource Center, and the Women’s Resource Center to provide homeless programs to residents, which may include shelter. April 21, 2020 Item #1 Page 64 of 127 Lastly, County’s Health and Human Services Agency (HHSA) and the Housing and Community Development Department are also integral to Carlsbad achieving its goal of reducing homelessness. These agencies administer the HOME and ESG programs and offer many healthcare services. Describe the strengths and gaps of the service delivery system for special needs population and persons experiencing homelessness, including, but not limited to, the services listed above City Council has approved a multi-departmental Homeless Response Plan, which uses compassionate enforcement to address the region-wide needs related to homelessness. This plan includes operating a homeless outreach team within the city’s Police Department, which is comprised of four specially trained law enforcement who make regular contact with persons experiencing homelessness to develop rapport, offer services, and ensure they are complying with the law. Additionally, the city contracts with two licensed clinical social workers to connect with individuals experiencing homelessness and link them to appropriate community services and supports. The city also will continue to partner with nonprofit service providers, task forces, and other community groups to identify the needed resources to meet the needs of those experiencing homelessness in Carlsbad. Some of the barriers affecting the unsheltered residents is the lack of shelter bed availability for single men, women, and families. La Posada is a 50-bed, emergency shelter located in the industrial area of the City of Carlsbad. Due to its geographic location, it is challenging for the homeless population to access, because it is in a remote area of town away from the homeless population. In addition, La Posada (like many other North County shelters) has rules and regulations in place that screen out the most vulnerable individuals (e.g. I.D. requirements, animals, substance use and mental health conditions, time limits, etc). It is important that these programs evaluate existing rules and regulations at all of the emergency shelters in North County, so they can operate from a true Housing First Approach to allow more individuals access housing. The community has mixed opinions around the expansion of homeless services. Carlsbad is one of the wealthiest beach communities in California and many individuals are fearful that if the city provides new homeless resources it will increase the number of homeless coming to Carlsbad. There are five current affordable housing complexes in Carlsbad that offer housing at 30% AMI or below ($22,500 or less). The total number of "extremely low income" units is 93. There are no current studios at the 30% AMI rate. All of these properties have waitlists. It is important to have permanent housing resources in place to help people exit out of the homeless system. Many unsheltered residents have limited funds and receive SSI at $943 per month for 2020 and fair market rent for a studio in Carlsbad is $1,854 and $2,070 for a one-bedroom unit. Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs Additional opportunities to fill gaps are emerging at the state level, as previously discussed. New financial resources and a more concerted focus on homelessness as an issue can provide local April 21, 2020 Item #1 Page 65 of 127 organizations more tools to address homelessness. Continuing its partnership with the Continuum of Care, the County, and nonprofit partners, the city will work diligently to fill gaps and reduce homelessness. Through its commitment and dedication, the Continuum of Care, along with its supporting agencies, will continue to strategize and implement best practices. Ultimately, this will provide homeless individuals with a home of their own. There is a lack of affordable housing, permanent supportive housing, and Section 8 vouchers in Carlsbad. To circumvent these issues and immediately move people off the streets into housing, the city will offer a housing subsidy for individuals who are homeless or at-risk of homelessness. Flexible Housing Subsidy Pool is a best practice in the field of homelessness to supplement a person's rent at fair market value. Many cities across the country are using this model with great success. In Carlsbad, the average price for a one-bedroom unit is $2,070, but a person experiencing homelessness has no income or a fixed income of Supplemental Security Income (SSI) at $943 per month. This program would house unsheltered individuals from the City of Carlsbad into housing. The City of Carlsbad provides CDBG funding to the La Posada de Guadalupe homeless shelter, which is the largest men's homeless shelter in North County with 50 beds with 10 additional beds during the winter months of December - April. In 2019, the program housed 432 unduplicated men who stayed for an average of 60-90 days. Out of the individuals served 48% were able to exit to either transitional or permanent housing. Seventy percent of the unsheltered residents in Carlsbad are male, non-veterans. The City of Carlsbad is evaluating different funding streams to expand La Posada de Guadalupe's current bed capacity. City staff have been meeting with the shelter’s leadership to expand this resource to include both men and women. The Carlsbad City Council recently approved a total of $8.3 million in financial assistance for construction of a 50 unit, permanent supportive housing project called Windsor Pointe which provides housing and case management services to homeless and lower income veterans and their families, and individuals experiencing homelessness with Serious Mental Illness (SMI). Applicants with SMI will be matched through the Coordinated Entry System (CES); however, the Windsor Pointe owner will apply local (Carlsbad resident or worker) and veteran preference to the extent consistent with applicable law. The city should continue to build and invest in permanent supportive housing projects like these and increase the supply of studios and one-bedroom affordable housing units at 30% AMI or below. Lastly, the city should apply for Housing Choice Vouchers (MS5) that prioritizes unsheltered individuals. These vouchers should offer case management to help with housing stability through the local housing authorities. April 21, 2020 Item #1 Page 66 of 127 SP-45 Goals - 91.415, 91.215(a)(4) Goals Summary Information Table SP-45.01: Goals Summary Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Increase and preserve affordable housing opportunities for low-and- moderate income households. 2020 2025 Affordable Housing Housing Services Special Needs Housing Citywide Affordable Housing $900,000 10 households 2 Prevent and reduce homelessness. 2020 2025 Homeless Shelters Homeless Prevention Homeless Services Citywide Homeless $240,015 3,600 individuals 3 Strengthen support services for lower income residents and residents with special needs. 2020 2025 Homeless Non-Homeless Special Needs Citywide Supportive Services $240,015 3,600 individuals 4 Improve and provide facilities to serve lower income persons. 2020 2025 Non-Housing Community Development Citywide Improve Facilities $900,000 500 individuals 5 Provide fair housing services to residents. 2020 2025 Non-Homeless Special Needs Citywide Fair Housing $113,000 1,500 individuals 6 Plan and administer the CDBG program. 2020 2025 Administration Citywide Planning and Administration $450,000 N/A April 21, 2020 Item #1 Page 67 of 127 Goal Descriptions 1 Goal Name Increase and preserve affordable housing opportunities for low-and-moderate income households. Goal Description Provide direct benefit to lower income persons through the provision or retention of affordable housing units in Carlsbad. 2 Goal Name Prevent and reduce homelessness. Goal Description Provide shelter or services to homeless or near homeless persons/families which result in an improved situation through employment, permanent or transitional housing, treatment of mental, or substance abuse problems, etc. 3 Goal Name Strengthen support services for lower income residents and residents with special needs. Goal Description Support the provision of services to Carlsbad LMI residents and special needs populations, including those with mental health needs, the elderly, and unaccompanied youth. 4 Goal Name Improve and provide facilities to serve lower income persons. Goal Description Provide assistance to city projects that benefit lower income households by improving and providing facilities that serve their needs. Such projects must be able to demonstrate that they will serve areas of the City of Carlsbad that meet HUD requirements regarding household incomes for that area. 5 Goal Name Provide fair housing services to residents. Goal Description Carlsbad contracts with a qualified service provider to provide fair housing services in the city. Services are directed at promoting housing opportunities for all persons regardless of their special characteristics as protected by State and Federal fair housing laws. 6 Goal Name Plan and administer the CDBG program. Goal Description Up to 20 percent of the CDBG funds will be used to support the general administration of the programs by the Housing Services Division April 21, 2020 Item #1 Page 68 of 127 Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) The city does not receive HOME funds directly, but participates in the HOME Consortium, which is operated by the County of San Diego. April 21, 2020 Item #1 Page 69 of 127 SP-65 Lead-based Paint Hazards - 91.415, 91.215(i) Actions to address LBP hazards and increase access to housing without LBP hazards The Lead-Based Paint (LBP) regulations affect a variety of housing and community-based programs. The process for identifying and resolving LBP issues varies depending upon the amount of assistance and the type of program affected. The most common actions that need to be taken are: • Lead Hazard Evaluation – a risk assessment, paint testing or a combination of these to determine the presence of LBP hazards or lead-based paint in properties built prior to 1978. • Lead Hazard Reduction – activities designed to reduce or eliminate exposure to LBP hazards through methods including interim controls, standard treatments, or abatement. • Clearance – an activity conducted following LBP hazard reduction activities to determine that the hazard reduction activities are complete. Approximately 32 percent of the city’s housing units were constructed prior to 1980, a strong indicator that there may be a more limited scope of lead-based paint issues since residential use of LBP was banned in 1978. For comparison, just over 60 percent of California’s housing stock was built before 1980. It is helpful that the city’s housing stock is slightly newer than the State’s, and therefore healthier, but that should not preclude actions to address existing LBP issues. An important method for mitigating LBP risks is modernizing the housing stock. This mean producing new affordable units that will increase access to housing without lead-based paint hazards. This is a slow process, however, so the County’s Health and Human Services Agency offers a lead poisoning prevention program that County residents can access. How are the actions listed above integrated into housing policies and procedures? HUD requires that all CDBG and HOME funded activities comply with HUD’s regulations regarding lead- based paint. In accordance with program requirements, the City of Carlsbad’s rehabilitation program requires that each home assisted and built prior to 1978 must undergo LBP testing. If deteriorated lead- based paint surfaces are found, it must be stabilized during the rehabilitation of the property. Abatement must be performed by a certified LBP professional with a certified lead-based paint assessor issuing a Clearance Inspection prior to the issuance of the Notice of Completion. April 21, 2020 Item #1 Page 70 of 127 SP-70 Anti-Poverty Strategy - 91.415, 91.215(j) Jurisdiction Goals, Programs and Policies for reducing the number of Poverty-Level Families According to ACS data, approximately 6.6 percent of the city’s residents are living at or below the federal poverty level. While this is lower than the national and state rates of poverty, it must still be addressed. Poverty is complex and requires a multi-faceted approach to address the needs of the community and the city must rely on partnerships to reduce the number of individuals and families experiencing poverty. A major partner in reducing poverty in Carlsbad is the County of San Diego, which administers the CalWORKs Program. CalWORKs provides cash aid to needy families to cover the cost of essentials like housing, healthcare, and clothing. It also supports job training through the County and the Community College Districts. The County also administers CalFresh, the federally funded food assistance program that is widely regarded as one of the most impactful anti-poverty programs in the country. The program has demonstrated positive economic impacts, improved health outcomes, and decreased food insecurity.3 The County administers many other programs that help reduce and prevent poverty. These include but are not exclusive to: • Cash Assistance Program for Immigrants • Child Welfare Services • First 5 Commission of San Diego • Medi-Cal • Veterans Services Additionally, the County of San Diego funds various non-profit organizations and provides health care and social services, including in North County. The City of Carlsbad will continue to support organizations that offer social services to low-income residents. How are the Jurisdiction poverty reducing goals, programs, and policies coordinated with this affordable housing plan The city supplements the County’s services with its own resources, including rental assistance vouchers through the local housing authority, CDBG-funded public services, and activities funded by the affordable housing trust fund. Additionally, the city will seek out any opportunities to create or fund affordable housing for the city’s extremely low-income populations. 3 “The Positive Effect of SNAP Benefits on Participants and Communities,” Food Research and Action Center (FRAC). April 21, 2020 Item #1 Page 71 of 127 SP-80 Monitoring - 91.230 Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements City staff will monitor its performance in meeting its goals and objectives set forth in the Consolidated Plan by reviewing quarterly progress reports required to be submitted by sub-recipients to detail how they are meeting goals and objectives of their individual programs. City staff will also prepare a Consolidated Annual Progress and Evaluation Report (CAPER) to describe its performance in meeting its goals and objectives. City staff will monitor compliance with CDBG program requirements, including timeliness of expenditures, by conducting annual monitoring visits to sub-recipients and periodically reviewing timeliness of expenditures when preparing drawdown vouchers for CDBG funds. Sub-recipients will be reminded of the need for the timely expenditure of funds, and funds for activities which are not spending funds in a timely manner may be reallocated to activities that are more ready to expend those funds April 21, 2020 Item #1 Page 72 of 127