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Home My WebLink AboutREVISED Item No. 9 HUD Annual Action Plan PY2021-2022. REPORT (3)6/2/2021 5:01 PM Public Hearing City of San Bernardino Request for Council Action Date: June 2, 2021 To: Honorable Mayor and City Council Members From: Michael Huntley, Community and Economic Development Director By: Gretel Noble, Community Development Department Subject: Draft Fiscal Year 2021-2022 Annual Action Plan Associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs; Substantial Amendment Action Plan FY 2020-2021 – Coronavirus Relief Funds Community Development Block Grant-CV3 Recommendation 1. It is recommended that the Mayor and the City Council for the City of San Bernardino, California, conduct a public hearing on the review of the draft Fiscal Year (FY) 2021-2022 Annual Action Plan (AAP) associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs; and 2. Adopt the draft Fiscal Year 2021-2022 Annual Action Plan as an application for funding under Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs; and 3. Authorize the City Manager or designee to take any further actions and execute any further documents as are necessary to effectuate the submittal of the Draft HUD Fiscal Year 2021-2022 Annual Action Plan and certification to HUD; and 4. Direct the Finance Director to amend the budget for Emergency Solutions Grant (ESG) unspent dollars; and 5. Adopt a Substantial Amendment to the FY 2020-2021 Action Plan; and 6. Direct the Finance Director to amend the Fiscal Year 2020-2021 Budget pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; and 7. Direct the Finance Director to establish new funds and associated accounts for the Community Development Block Grant (CDBG-CV3) pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; and 8. Authorize the City Manager or designee to take any further actions and execute any further documents and certifications as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan. 6/2/2021 5:01 PM Background By June 11, 2021, the City of San Bernardino (City) must submit to the United States Department of Housing and Urban Development (HUD) the Fiscal Year 2021-2022 Annual Action Plan (AAP). The AAP describes how the City intends to invest federal funds toward meeting the City’s community development, affordable housing and homeless prevention needs. The Annual Action Plan for FY 2021-2022 includes three HUD funded programs including: CDBG: The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate income. Jurisdictions receiving CDBG funds must use the funds to meet one of the three national objectives: 1. To benefit low and moderate-income persons; 2. To aid in the prevention or elimination of slums and blight; or 3. To meet community development needs having a particular urgency. HOME: The objectives of the program are: 1. To strengthen the ability of state and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing; 2. To provide assistance to participating jurisdictions for development of affordable housing; and 3. To strengthen partnerships among all levels of government and the private sector. ESG: The program provides funding for the: 1. Engagement of individuals and families living on the streets; 2. Improvement of homeless shelters and operation of shelters; or 3. Rapid re-housing of homeless persons and homeless prevention. The Action Plan serves as the City’s grant application for the grant programs. The City of San Bernardino’s draft Fiscal Year 2021-2022 Annual Action Plan recommends projects that best meet identified community needs eligible under CDBG, HOME and ESG programs. On April 21, 2021, staff presented to the Mayor and City Council a draft of the AAP for their review. There were no public comments received. Discussion The draft AAP covers the second year segment of the HUD approved five year Consolidated Plan for the City of San Bernardino. The City’s FY 2021-2022 allocation was announced by HUD on February 25, 2021. On May 13, 2021, the City was notified 6/2/2021 5:01 PM of an increase in its CDBG allocation in the amount of $3,307,949, which is approximately a 1.5% increase from its original funding allocation. The City is receiving $1,395,707 in HOME funds and $290,457 in ESG funds. A summary below identifies the recommended activities and funding levels for the FY 2021-2022 AAP. RECOMMENDED ACTIVITIES BY CATEGORY Category Program Category Totals CDBG HOME ESG 2021 Grant Fund Allocation $ 3,307,949 $1,395,707 $ 290,457 $ 4,994,113 Reprogrammed Funds $ 800,000 $ 270,000 $ 54,446 $ $ 324,4461,124,44 6 Total - 2021 Available Grant Fund $ 3,307,9494,10 7,949 $1,665,707 $ 344,903 $ $ 5,318,5596,118,5 59 Administration (maximum available) $ 661,590 $ 139,571 $ 21,784 $ 822,945 Section 108 Repayment $ 772,323 $ 772,323 Micro-Enterprise $ 35,000 $ 35,000 Fair Housing1 $ 73,000 $ 73,000 Small Business Micro Loan Program $ 230,979 $ 230,979 Arrowhead Grove – Phase 4 $ 385,870 $ 385,870 Infill Housing $ 25,000 $ 25,000 Seccombe Park Housing $ 431,266 $ 431,266 Eastpointe Community – Homeownership $ 214,000 $ 214,000 Affordable Housing Project $ 470,000 $ 470,000 Public Facilities $ $ 1,535,0572,33 5,057 $ $ 1,535,0572,335,0 57 Homeless Services $ 323,119 $ 323,119 Program Totals $ $ 3,307,9494,10 7,949 $1,665,707 $ 344,903 $ $ 5,318,5596,118,5 59 1Required for all jurisdictions receiving CDBG funds. In summary, the public facility project being recommended consists of a street improvement project at multiple CDBG eligible locations in the City to be undertaken by the City’s Public Works Department. These streets have been selected due to the Infill Housing projects that will take place in the near future. The improvement of the streets and new housing will have a positive impact in the neighborhoods. The streets for improvement are as follows: • 532 Ramona Avenue – Ward 1 • 2129 Wall Street – Ward 2 • 938 North “G” Street – Ward 2 • 140 W. 13th Street – Ward 2 • Grape Street (Walnut to Mill Street) – Ward 3 • Davidson Avenue (Baseline to 14th Street) – Ward 6 • 2060 E. 18th Street – Ward 7 6/2/2021 5:01 PM Three of the activities, Administration, Fair Housing and Section 108 repayment must be funded annually. The micro-enterprise program will continue to be funded as it provides no-cost services to small business owners in the City of San Bernardino, to assist with successful business launches and expansion of existing businesses. The City will fund a Small Business Micro Loan Program. The City will leverage its funds with those of the institution making additional dollars available to small businesses. Microloans will be between $25,000 and $50,000, to help small businesses grow to the next level of development by supporting activities such as renting office or retail space, hiring employees, or buying equipment. The loan term is recommended to be between five to seven years with a competitive interest rate of 5% to 9%. Staff is funding the reprogrammed CDBG funds in the amount of $800,000 for the fence being placed around Seccombe Park. The work will be undertaken by the City’s Public Works Department. Staff is funding the reprogrammed HOME funds in the amount of $270,000 for a U.S. Vets New Affordable Housing project. The City, in partnership with the San Bernardino County Community Development and Housing Department (CDH), would entail the development of permanent supportive housing (PSH) or affordable housing. The City has submitted to CDH an expression of interest willing and capable of a developer selection, project design, and community outreach. The project consists of 30 units of veteran PSH. Staff is in communication with the United States (U.S.) Veterans Initiative, who Staff is recommending support/sponsorship of the project. Substantial Amendment to Annual Action Plan (AAP) FY 2020-2021 Coronavirus Funding CDBG-CV3 At a public hearing on March 17, 2021, the City Council approved the City’s Substantial Amendment to the FY 2020-2021 AAP CDBG-CV3. However, upon HUD’s review of the plan and associated documents, HUD determined that the funding recommendation Staff made to update the City of San Bernardino’s Local Hazard Mitigation Plan (LHMP) and the Emergency Operations Plan (EOP) is considered an administrative cost, which would exceed the City’s CDBG administrative cap of 20%. Therefore, Staff is recommending the original amount allocated to the City’s LHMP to the work to be undertaken at the Lytle Creek Community Center. Staff will consider improvements at the Center that will prepare, prevent and respond to the Coronavirus. Amount recommended: $300,000 2021-2022 Goals and Objectives The draft Annual Action Plan will meet Key Target No. 3: Improved Quality of Life by providing infrastructure, fair housing and business assistance in the City. Approval of the AAP will allow the City to continue to fund programs that preserve and improve the quality of the housing stock, promote homeownership, assist in small business start-up 6/2/2021 5:01 PM and expansion, fund infrastructure projects, and maintain a working relationship with the federal government. Fiscal Impact Approval of the draft FY 2021-2022 Annual Action Plan will not impact the General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a public hearing on the review of the draft Fiscal Year (FY) 2021-2022 Annual Action Plan (AAP) associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs; and 2. Adopt the draft Fiscal Year 2021-2022 Annual Action Plan as an application for funding under Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs; and 3. Authorize the City Manager or designee to take any further actions and execute any further documents as are necessary to effectuate the submittal of the Draft HUD Fiscal Year 2021-2022 Annual Action Plan and certification to HUD; and 4. Direct the Finance Director to amend the budget for Emergency Solutions Grant (ESG) unspent dollars; and 5. Adopt a Substantial Amendment to the FY 2020-2021 Action Plan; and 6. Direct the Finance Director to amend the Fiscal Year 2020-2021 Budget pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; and 7. Direct the Finance Director to establish new funds and associated accounts for the Community Development Block Grant (CDBG-CV3) pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; and 8. Authorize the City Manager or designee to take any further actions and execute any further documents and certifications as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan. Attachments Attachment 1 City of San Bernardino Draft FY 2021-2022 Annual Action Plan Attachment 2 Fiscal Year 2021-2022 Draft Annual Action Plan Activity Recommendations Attachment 3 Substantial Amendment to the FY 2020-2021 Annual Action Plan Attachment 4 CDBG-CV3 Project Proposals FY 2020-2021Substantial Amendment to FY 2020-2021 Annual Action Plan Attachment 5 FY 2021-2022 Annual Action Plan – Public Notices Attachment 6 Substantial Amendment to the FY 2020-2021 Annual Action Plan – Public Notices Ward: Citywide Synopsis of Previous Council Actions: April 21, 2021 Mayor and City Council approved the City’s Draft Fiscal Year2021-2022 Annual Action Plan. March 17, 2021 Mayor and City Council approved the City’s Substantial Amendment to