06-04-2019 - Item 08 - Public Hearing CBDGAGENDA ITEM NO. 8
AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE:June 4, 2019
TO:Mayor and City Council
FROM:David Carmany
Interim City Manager
SUBJECT:FISCAL YEAR (FY) 2019-2020 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) ACTION PLAN
RECOMMENDATION:
It is recommended that the City Council approve the proposed Fiscal Year (FY) 2019-2020 CDBG
Action Plan.
BACKGROUND:
The Community Development Block Grant (CDBG) program is a flexible program of the U.S.
Department of Housing and Urban Development (HUD) that provides communities with resources
to address a wide range of unique community development needs. Beginning in 1974, the CDBG
program is one of the longest continuously run programs at HUD. The CDBG program provides
annual grants on a formula basis to 1,209 general units of local government and States.
The CDBG program works to ensure decent affordable housing, to provide services to the most
vulnerable in our communities, and to create jobs through the expansion and retention of businesses.
CDBG is an important tool for helping local governments tackle serious challenges facing their
communities. The CDBG program has made a difference in the lives of millions of people and their
communities across the Nation.
The annual CDBG appropriation is allocated between States and local jurisdictions called "non-
entitlement" and "entitlement" communities respectively. Entitlement communities are comprised of
central cities of Metropolitan Statistical Areas (MSAs); metropolitan cities with populations of at
least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the
populations of entitlement cities). States distribute CDBG funds to non-entitlement localities not
qualified as entitlement communities.
HUD determines the amount of the city’s grant by using a formula comprised of several measures of
community need, including the extent of poverty, population, housing overcrowding, age of housing,
and population growth lag in relationship to other metropolitan areas. West Covina is direct
entitlement community and uses these federal funds to create transformative impact, and to improve
the lives of residents, especially those with low and moderate income levels.
In recent years, the City of West Covina has utilized these funds for Code Enforcement, the
Domestic Violence Victim Advocate (Police Department), Senior Meals program, the Business
Assistance Loan Program, the Housing Preservation Program, Public Infrastructure Projects, and to
fund various public service providers (i.e., food banks, homeless advocates, meals on wheels, etc.).
As a condition of receiving the funds, HUD requires the City to prepare an annual Action Plan,
which details the activities the City plans to undertake with the funds in the respective year. This
Action Plan is to be consistent with the five-year CDBG Consolidated Plan, which is a strategic and
visioning document on the use of these funds. The City Council adopted its most recent 5-year
CDBG Consolidated Plan on May 5, 2015, which is valid through 2020. The City's proposed FY
2019-2020 CDBG Action Plan is included as Attachment No. 1 of this report.
As a basis for the Consolidated Plan, an assessment and prioritization of community needs, relative
to the use of CDBG funds, was required. The categories of community need identified in the current
Consolidated Plan are: (1) Economic Development, (2) Infrastructure Improvements, (3) Owner
Occupied Housing, (4) Public Facilities, (5) Homeless/HIV/AIDS, (6) Non-Homeless Special
Needs, (7) Public Services, and (8) Rental Housing. Attachment No. 2 describes each category in
detail.
To facilitate prioritization and to evaluate the categories, HUD utilizes four levels of priority: High,
Medium, Low, and No Such Need. A High Priority means that activities in that category will be
funded by CDBG funds. A Medium Priority means activities in that category may be funded by
CDBG funds. A Low Priority means CDBG funds will not be used to fund activities in a particular
category.
The City Council established the FY 2015-2020 Consolidated Plan Priorities through actions on May
5, 2015, and subsequent amendments on July 7, 2015, April 5, 2016, and March 20, 2018, as
outlined in Table 1. These priorities were affirmed by the City Council on February 19, 2019, for
the FY 2019-2020 Action Plan.
Table 1
FY 2015-2020 Consolidated Plan Priorities
Categories of Need Priority Level
Economic Development High
Homeless/HIV/AIDS High
Infrastructure Improvements High
Owner-Occupied Housing High
Public Facilities High
Non-Homeless Special Needs Medium
Public Services Medium
Rental Housing Low
The categories shown as ‘Medium’ and ‘Low’ do not indicate that these are not priorities of the City
of West Covina; however, with limited CDBG funds, the City Council determined the other
categories as a priority for use of CDBG funding during this term.
DISCUSSION:
As directed by the City Council on February 19, 2019, City staff drafted the proposed FY 2019-2020
CDBG Action Plan (Attachment No. 1) to incorporate a continuation of the City’s approved FY
2015-2020 Consolidated Plan Priorities, as amended (Attachment No. 2).
In FY 2019-2020, the City will receive $811,815 in CDBG funds. This represents an increase of
approximately $45,000 from the current year. With additional program income estimated at
$43,250, (approximately $91,600 less than the current year) through repayments of CDBG-funded
loans to the City’s Housing Preservation Program, staff estimates a total amount of available
resources to be approximately $855,065. The proposed budget is shown below in Table 2.
Approved funding for FY 2018-2019 is shown for comparison.
Table 2
Proposed FY 2019-2020 CDBG Action Plan Budget
Project/Activity FY 2018-2019
Approved
FY 2019-2020
Proposed
1. Neighborhood Improvement Program $ 541,902 $555,805
2. Planning and Administration 169,270 171,000
3. Public Services 135,189 128,260
Total $ 846,361 $ 855,065
1.Neighborhood Improvement Program: Funds eligible capital improvements such as public
facilities improvements, street rehabilitation, replacement of curbs and gutters, removal of
barriers to accessibility, park improvements, etc.
2.Planning and Administration: By statute, capped at 20% of the sum of allocation and current
year (FY 2019-2020) program income. FY 2019-2020 program income, to be received
through repayment to the Housing Preservation Program is estimated at $43,250.
3.Public Services: By statute, capped at 15% of the sum of allocation and prior year (FY 2018-
2019) program income. FY 2018-2019 program income, received through repayment to the
Housing Preservation Program, is $43,250 as of the writing of this report
Relative to the Neighborhood Improvement Program, two new activities are proposed: Curb Access
Ramp Program ($100,000) and Replacement of Sliding Doors at the Senior Center ($100,000). The
projects and amounts are included in the proposed FY 2019-2020 Capital Improvement Program
(CIP) Budget.
Staff anticipates the unobligated balance of funding, $355,805, will be needed to augment funding
for two projects at the Senior Center approved in the FY 2018-2019 Action Plan: Renovation of the
Main Hall Restroom and Roof Replacement. Obligations of these funds will be brought back to the
City Council for consideration of proposed amendments to the FY 2018-2019 Action Plan in a future
public hearing.
The Business Assistance Program and Housing Preservation Program will occur in FY 2019-2020
with previously allocated funds which will be carried forward. As of the writing of the report, the
Business Assistance Program has a balance of $325,000 and the Housing Preservation Program has a
balance of $145,935 as of the writing of this report.
Regarding Public Services, the City published a Notice of Funding Availability in March 2019, and
received 11 funding requests totaling $172,000 ($43,740 more than is available) from public service
providers serving West Covina residents. Descriptions of services provided are included as
Attachment No. 3. A summary of proposed performance based on requested funding is included as
Attachment No. 4.
Table 3 details proposed FY 2019-2020 funding by activity, alongside approved funding for FY
2018-2019 for comparison.
Table 3
Proposed FY 2019-2020 CDBG Action Plan Funding
Project/Activity FY 2018-2019
Approved
FY 2019-2020
Proposed Account
1. Curb Access Ramp Program $ 0 $ 100,000 Capital Project
2. Senior Center - Door Replacement 0 100,000 Capital Project
3. Administration 169,270 171,000 131.51.5120.5111
4. Senior Meals Program (*)60,000 60,000 131.51.5121.6120
5. Domestic Violence Victim Advocate (*)20,000 20,000 131.31.3130.5111
6. Careship (*)6,000 6,000 131.51.5136.6120
7 . Housing Rights Center 10,000 10,000 131.51.2244.6120
8. Senior Assistance Program (YWCA)7,404 7,404 131.51.5121.6444
9 . Action Food Pantry 6,347 5,290 131.51.5121.6207
10. Meals on Wheels (YWCA)5,000 5,000 131.51.5121.6204
11. ESGV Coalition for the Homeless 5,114 4,686 131.51.5121.6467
12. Cory's Kitchen 4,650 4,260 131.51.5121.6466
13. Project 29:11 (Food Pantry)5,114 4,160 131.51.5121.6203
14. Assistance League (Op School Bell)1,592 1,460 131.51.5121.6462
15. CIP - To be Obligated 0 355,805 TBD
16. Senior Center - Roof Replacement 231,902 0 19005.131.7500
17. Senior Center - Restroom Renovation 200,000 0 19003.131.7500
18. Senior Center - North Wing
Improvement
and Flooring Replacement
70,000 0 18004.131.7500
19. Senior Center - Marquee Replacement 40,000 0 19004.131.7500
Total $
846,361
$
855,065
With an interest in mitigating impact to the General Fund, staff earmarked funding for City projects
at the levels of request by the individual departments. This will offset City-program expenses that
would otherwise be supported by the City's General Fund. All City projects are designated with an
asterisk (*) in Table 3. A decrease in CDBG funding to these programs would result in an increased
burden on the General Fund in order to maintain current service levels.
Staff has also recommended funding for the Housing Rights Center. As a CDBG recipient, HUD
requires grantees to provide services that promote and support fair housing in the community.
Funding the Housing Rights Center addresses this HUD requirement.
Staff recommends funding the projects (Projects No. 4 through No. 7) as shown below in Table 3.
The CDBG Ad Hoc Committee of the Community and Senior Services Commission (Ad Hoc
Committee) evaluated the remaining seven (7) applicants (Projects No. 8 through No. 14).
Applicants made presentations to the Ad Hoc Committee on May 2, 2019. The Ad Hoc Committee
then developed recommendations to allocate the balance of $32,260 (shown in Table 3) for
consideration by the full Commission. The Commission approved the recommendations at
their Regular Meeting held on May 14, 2019. The recommendations are included in the proposed
Action Plan and presented for the consideration of the City Council.
As required, the draft FY 2019-2020 CDBG Action Plan was available for a 30-day public review
period, which began on May 18, 2019. No written public comments were received as of the time of
writing this report.
An approved Action Plan is due to HUD by June 11, 2019.
OPTIONS:
1.Approve staff’s recommendation; or
2.Provide alternative direction.
ENVIRONMENTAL REVIEW:
This project is a General Exemption under the California Environmental Quality Act.
Prepared by: Kelly McDonald, Public Services Manager
Additional Approval: Nikole Bresciani, Assistant City Manager/Public Services Director
Fiscal Impact
FISCAL IMPACT:
In FY 2019-2020, the City is to receive $811,815 in CDBG funds. With additional program income
estimated at $43,250, through repayments of CDBG-funded loans to the City’s Housing
Preservation Program, staff estimates a total amount of available resources to be approximately
$855,065. Approved funding amounts will be included in the City’s FY 2019-2020 Operating and
Capital Improvement Budget.
Attachments
Attachment No. 1 - FY 2019-2020 CDBG Action Plan - Proposed
Attachment No. 2 - Descriptions of Categories of Need in Table 1
Attachment No. 3 - FY 2019-2020 CDBG PSP Applicants
Attachment No. 4 - FY 2019-2020 CDBG PSP Performance