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03-17-2020 - AGENDA ITEM 13 CONSIDERATION OF PRIORITIES FOR THE DEVELOPMENT OF A DRAFT FISCAL YEAR 2020-2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CONSOLIDATED PLAN11/16/2020 Print Staff Report AGENDA ITEM NO. 13 DATE: March 17, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF PRIORITIES FOR THE DEVELOPMENT OF A DRAFT FISCAL YEAR 2020-2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CONSOLIDATED PLAN RECOMMENDATION: It is recommended that the City Council direct staff to develop a draft Fiscal Year 2020-2024 Consolidated Plan based upon the priorities in Table 1 below. 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 https://destinyhosted.com/print_ag_memo.cfm?seq=710&rev_num=0&mode=Extemal&reloaded=true&id=93782 1/4 11/16/2020 Print Staff Report 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 recipient of CDBG funds, the City is required to develop and submit a Consolidated Plan is a condition of receiving the funds. The Consolidated Plan is intended to serve as a visioning and strategic planning document, which will guide the use of HUD funds over a five-year period. The Plan meets the application, planning, and submission requirements for CDBG, which is a federal program with an overall objective of developing viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities principally for low- and moderate -income persons. In May 2000, the City Council adopted the City's first Consolidated Plan to guide the use of CDBG Funds. HUD requires that the Consolidated Plan be updated every five years. An approved update to cover the FY 2020-2024 period is due to HUD in May 2020. DISCUSSION: The Consolidated Plan development process requires two public hearings. The first is referred to as the Pre - Development hearing and occurs prior to the publication of the draft Consolidated Plan. The purpose of this hearing is to get citizen input relative to the identification and prioritization of needs in the community to be addressed with CDBG funds over the next five-year cycle. A section of the Consolidated Plan, referred to as the Strategic Plan, represents the course of action to be taken in order to respond to the needs in the community. HUD requires the City to make a relative prioritization in regard to its planned use of CDBG funding into eight categories of need as a basis for the CDBG Consolidated Plan for the five-year period. The categories are: (1) Infrastructure Improvements, (2) Public Facilities, (3) Homelessness (4) Public Services, (5) Non -Homeless Special Needs (6) Economic Development, (7) Owner Occupied Housing, and (8) Rental Housing. Attachment No. 1 describes each category. Four levels of priority: High, Medium, Low, and No Such Need, may be used to facilitate prioritization and to evaluate the categories 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. Table 1 shows the staff recommendation, which represents a continuance of the City's prioritization approved by the City Council on February 19, 2019, as part of the FY 2019-2020 CDBG Action Plan development process. It is based on: past CDBG funding allocations, the assumption that City will continue to fund public services at the 15% cap, the public consultation process, and input from City Departments (Public Services, Police and Community Development). The recommendation is also informed by the decrease in available funding, which is detailed later in this report. The categories shown as `Medium' and `Low' do not indicate that these are not priorities of the City of West Covina, but with limited CDBG funds, the City Council determined these as the priorities for CDBG funding. Table 1 FY 2020-2024 Consolidated Plan Priorities Categories of Need Priority Level Economic Development High Homelessness High Infrastructure Improvements High Owner -Occupied Housing High Public Facilities Medium https://destinyhosted.com/print_ag_memo.cfm?seq=710&rev_num=0&mode=Extemal&reloaded=true&id=93782 2/4 11/16/2020 Print Staff Report Public Services Medium Non -Homeless Special Needs Medium Rental Housing Low Relative to program funding, Table 2 shows the amount of CDBG grant funds received by the City in the current cycle. Table 2 CDBG Grant Funds Received by City in Current Cycle By Fiscal Year Fiscal Year FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Grant Amount $76Q439 $74Q580 $732,715 $766,361 $811,815 In Fiscal Year 2020-2021, the first year of the new cycle, the City will receive $805,423. Program income is another source of funding for eligible activities. In prior years, the City used CDBG funds to make loans to eligible applicants through the City's Home Improvement Loan Program, now Housing Preservation Program. Repayments of the CDBG-funded home improvement loans are considered Program Income and impact the overall availability of CDBG resources, as the funds can be re -programmed for eligible activities. Table 3 shows the amount of Program Income received during the current cycle. The asterisked (*) FY 19-20 amount is through March 10, 2020. Table 3 CDBG Program Income Received by City in Current Cycle By Fiscal Year Fiscal Year FY 15- 1 16 FY 16- 17 FY 17- 18 FY 18- 19 20 Program :E�HIIEH$�EE�J Income $3Q020 This public hearing is also the opportunity for the City Council to consider changing the prioritization of community needs for Fiscal Year 2020-2024 Consolidated Plan. Due to the anticipated reduction in resources, the staff recommendation essentially represents a continuance of the City's prioritization which was approved by the City Council on February 19, 2019, as part of the FY 2019-2020 CDBG Action Plan development process. In an effort to encourage and broaden public participation, the City developed an online survey accessible through the home page of the City's website. As of the writing of this report, there have been 19 responses. The results of the survey are included as Attachment No. 2. The responses generally support the assignment of priorities shown in Table 1. The survey will remain open through the planning process and results will be incorporated into the final draft the City Council will consider in a public hearing on May 5, 2020. Once approved, staff will develop a draft Consolidated Plan that includes the priorities. The draft will be available for a 30-day public review. Then it will be presented to the City Council for consideration in a public hearing scheduled for May 5. The City Council still retains the ability to fund all priorities as part of the City's annual budget process. Moreover, the City Council has the ability to modify/change priorities of the Categories of Need at this time or, with proper notice, at any point during the 5-year cycle. https://destinyhosted.com/print_ag_memo.cfm?seq=710&rev_num=0&mode=Extemal&reloaded=true&id=93782 3/4 11/16/2020 Print Staff Report OPTIONS: The City Council has the following options: 1. Direct staff to develop a draft FY 2020-2024 Consolidated Plan, which incorporates the priorities detailed in Table 1 of this report. 2. Provide alternate direction. Prepared by: Kelly McDonald, Public Services Manager Fiscal Impact FISCAL IMPACT: There is no fiscal impact resulting from this report. Attachments Attachment No. 1 - Descriptions of Categories of Need in Table 1 Attachment No. 2 - 2020-2024 Consolidated Plan Survey Results - as of 03102020 CITY Enhance City Facilities and Infrastructure COUNCIL Respond to the Global COVID-19 Pandemic GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.cfm?seq=710&rev_num=0&mode=Extemal&reloaded=true&id=93782 4/4 ATTACHMENT NO. 1 Descriptions of Categories of Need in Table 1, Consolidated Plan Priorities This attachment describes the Categories of Need shown in Table 1 of the staff report. 1. Economic Development: Activities to address these needs will be funded by the Community & Economic Development non -housing funds. Community & Economic Development activities and the new Business Assistance Program will address this category of need. 2. Homelessness: The allocation of CDBG funds to public services can address a portion of these needs. 3. Infrastructure Improvements: Improvements such as street rehabilitation and replacement of curbs and gutters will be funded during the Consolidated Plan cycle. (For example, projects may include street improvements.) 4. Owner -Occupied Housing: Owner housing needs will be addressed by the Housing Preservation Program (HPP). 5. Public Facilities: Public facilities may be funded during the Consolidated Plan cycle — 2020 to 2025. (For example, projects may include: accessibility improvement or parks and recreation facilities and youth centers.) 6. Public Services: A high priority was assigned to public services because CDBG funds can help to address the needs of the elderly, frail elderly, youth and other low/moderate income populations. These needs can be addressed by the 15% allocation of CDBG funds to public services. (For example, public services may include: youth services, transportation services, and crime awareness.) 7. Non -Homeless Special Needs: The allocation of CDBG funds to public services can address a portion of the non -homeless needs. (Non -homeless special needs populations include: the elderly, persons with HIV/AIDS, disabled, homebound, and mentally ill). 8. Rental Housing: Rental housing needs are addressed by the Section 8 rental assistance program and the affordable housing developments funded by the CED Low and Moderate Income Housing Fund. 2020-2024 Consolidated Plan Results (as of March 10, 2020) Q1. Please select the identity that describes you best: Answer Choices Responses West Covina resident 89.479/6 West Covina business owner 0.00 West Covina commercial property owner 10.53 Work in West Covina 10.53 Service agency with activities or clients within West Covina 5.26 Religious institution within West Covina 5.26 Other (please specify) 5.26 Answered Skipped Q2. Please indicate if your are affiliated with any other the organization types listed below. If other, please specify Answer Choices Responses Housing 100.00% 1 Foundation 0.00% 0 Public Housing Authority 0.00% 0 Services -Children 0.00% 0 Services - Elderly persons 0.00% 0 Services -Homeless 0.00% 0 Services - Persons with disabilities 0.00% 0 Services Persons with HIV/AIDS 0.00% 0 Services- Victims of domestic violence 0.00% 0 Services -Health 0.00% 0 Services -Education 0.00% 0 Services -Employment 0.00% 0 Services - Fair Housing 0.00% 0 Other (please specify) 0 Answered 1 Skipped 18 03. How long have you lived in West Covina? Answer Choices Responses Less than 1 year 11.76 % 2 1-4 Years 5.88% 1 5-10 Years 11.76 % 2 Over 10 years 70.59 % 12 Answered 17 Skipped 2 Q4. Please rate the need for the following INFRASTRUCTURE activities in West Covina: High Need Medium Need Low Need No Need Dort Know Total Street and road improvements 21.05 % 4 68.42 / 13 10.53% 2 0.00% 0 0.00% 0 19 Sidewalk improvements 5.26% 1 63.16% 12 26.32% 5 0.00% 0 5.26% 1 19 Water system capacity improvements 26.32% 5 42.11% 8 26.32% 5 0.00% 0 5.26% 1 19 Water quality improvements 36.84% 7 31.58% 6 26.32% 5 5.26% 1 0.00% 0 19 Sewer/storm drain improvements 15.79% 3 47.37% 9 31.58% 6 5.26% 1 0.00% 0 19 Flood drainage improvements 5.56% 1 66.67% 12 16.67% 3 5.56% 1 5.56% 1 18 Bridge improvements 0.00% 0 31.58% 6 26.32% 5 21.05% 4 21.05% 4 19 Bicycle and walking paths 26.32% 5 36.84% 7 31.58% 6 5.26% 1 0.00% 0 19 Tree Planting 31.58% 6 42.11% 8 15.79% 3 5.26% 1 5.26% 1 19 Other (please specify) 1 Answered 19 Skipped 0 Q5. Please rate the need for the following HOUSING activities in West Covina: High Need Medium Need Low Need No Need Dont Know Total Owner -occupied housing rehabilitation 31.58% 6 47.37% 9 10.53% 2 5.26% 1 5.26% 1 19 Rental -occupied housing rehabilitation 36.849/6 7 26.32% 5 21.05% 4 5.26% 1 10.53% 2 19 Construction of new affordable for -sale housing 42.11% 8 26.32% 5 10.53% 2 21.05% 4 0.00% 0 19 Construction of new affordable rental housing 31.58% 6 31.58% 6 15.79% 3 21.05% 4 0.00% 0 19 First-time home -buyer assistance 52.63% 10 31.58% 6 5.26% 1 10.53% 2 0.00% 0 19 Rental assistance 21.05% 4 42.11% 8 10.53% 2 26.32% 5 0.00% 0 19 Energy efficient home improvements 52.63% 10 42.11% 8 5.26% 1 0.00% 0 0.00% 0 19 Heating/cooling HVAC replacement or repairs 26.32% 5 47.37% 9 15.79% 3 0.00% 0 10.53% 2 19 ADA(Americans with Disabilities Act)improvements 31.58% 6 36.84% 7 21.05% 4 5.26% 1 5.26% 1 19 Housing demolition 5.26% 1 10.53% 2 31.58% 6 31.58% 6 21.05% 4 19 Mixed use housing 5.26% 1 36.84% 7 31.58% 6 21.05% 4 5.26% 1 19 Mixed income housing 5.26% 1 31.58% 6 26.32% 5 21.05% 4 15.79% 3 19 Senior -friendly housing 52.63% 10 26.32% 5 15.79% 3 5.26% 1 0.00% 0 19 Other (please specify) 0 Answered 19 Skipped 0 06. Please rate the need for the following HOUSING types for special needs populations in West Covina: High Need Medium Need Low Need No Need Don't Know Total Senior housing, such as nursing homes or assisted living facilities 42.11 % 8 26.32% 5 10.53% 2 5.26% 1 15.79% 3 19 Housing designed for persons with disabilities 21.05% 4 47.37% 9 21.05% 4 5.26% 1 5.26% 1 19 Rental assistance for persons at -risk of homelessness 36.849/6 7 36.84% 7 10.53% 2 15.79% 3 0.00% 0 19 Shelters for youth 26.32% 5 36.84% 7 15.79% 3 15.79% 3 5.26% 1 19 Transitional housing 21.05% 4 21.05% 4 15.79% 3 26.32% 5 15.79% 3 19 Emergency shelters 26.32% 5 26.32% 5 21.05% 4 15.79% 3 10.53% 2 19 Permanent supportive housing, such as subidized housing that offers 15.79% 3 36.84% 7 26.32% 5 15.79% 3 5.26% 1 19 Other (please specify) 1 Answered 19 Skipped 0 Q7. Please rate the need for the following COMMUNITY AND PUBLIC FACILITIES in West Covina High Need Medium Need Low Need No Need Don't Know Total Senior centers 16.67% 3 66.67% 12 11.11% 2 0.00% 0 5.56% 1 Youth centers 17.65 % 3 64.71 % 11 11.76% 2 0.00% 0 5.88 % 1 Community centers 22.22% 4 72.22% 13 0.00% 0 0.00% 0 5.56% 1 Parks and recreational facilities 61.11% 11 27.78% 5 5.56% 1 5.56% 1 0.00% 0 Childcare facilities 16.679/ 3 44.44% 8 5.56% 1 11.11% 2 22.22% 4 Residential treatment centers 5.56% 1 38.89% 7 11.11% 2 27.78% 5 16.67% 3 Public buildings with improved accessibility 5.56% 1 61.11 % 11 16.67% 3 16.67% 3 0.00% 0 Homeless shelters 27.78% 5 22.22% 4 16.67% 3 33.33% 6 0.00% 0 Facilities for persons living with AIDS 5.56% 1 11.11% 2 27.78% 5 33.33% 6 22.22% 4 Facilities for abusedineglected children 16.67% 3 44.44% 8 22.22% 4 5.56% 1 11.11% 2 Other (please specify) Answered Skipped 08. Please rate the need for the following COMMUNITY AND PUBLIC SERVICES in West Covina: High Need Medium Need Low Need No Need Don't Know Total Children afterschool/summer camp programs & services 55.56% 10 27.78% 5 5.56% 1 5.56% 1 5.56% 1 Childcare services and facilities 44.449/6 8 38.89% 7 5.56% 1 5.56% 1 5.56% 1 Counseling/emotional support services 33.33% 6 44.44% 8 16.67% 3 5.56% 1 0.00% 0 Disaster and emergency preparedness services 61.11 % 11 27.78% 5 11.11% 2 0.00% 0 0.00% 0 Drug/alcohol abuse treatment/counseling 11.11% 2 50.00% 9 22.22% 4 16.67% 3 0.00% 0 Food services for residents with special needs 16.679/6 3 50.00% 9 22.22% 4 5.56% 1 5.56% 1 Workforce/skills training and/or job placement 33.33% 6 50.00% 9 16.67% 3 0.00% 0 0.00% 0 Low-cost transportation services (taxi coupons and Dial -A -Ride) 22.22% 4 44.44% 8 22.22% 4 5.56% 1 5.56% 1 Neighborhood crime prevention programs 77.78% 14 16.67% 3 5.56% 1 0.00% 0 0.00% 0 Park and recreation programs 61.11 % 11 33.33% 6 5.56% 1 0.00% 0 0.00% 0 Programs for at -risk youth 38.89% 7 50.00% 9 11.11% 2 0.00% 0 0.00% 0 Homeless counseling/outreach services 38.89% 7 33.33% 6 11.11% 2 16.67% 3 0.00% 0 Affordable legal services 44.449/6 8 27.78% 5 27.78% 5 0.00% 0 0.00% 0 Health care services & facilities 50.00% 9 33.33% 6 11.11% 2 5.56% 1 0.00% 0 Domestic violence counseling 16.67% 3 66.67% 12 5.56% 1 11.11% 2 0.00% 0 Other (please specify) Answered Skipped 18 17 18 18 18 18 18 18 18 18 0 18 1 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 0 18 1 Q9. Please rate the need for SERVICES AND FACILITIES for each of the following special needs groups in West Covina: High Need Medium Need Low Need No Need Don't Know Total Homeless Persons 38.89% 7 16.67% 3 11.11% 2 22.22% 4 11.11% 2 18 Seniors(65+) 44.449/6 8 33.33% 6 11.11% 2 0.00% 0 11.11% 2 18 Persons with severe mental illness 27.78% 5 27.78% 5 16.67% 3 11.11% 2 16.67% 3 18 Persons with physical disabilities 11.11% 2 50.00% 9 11.11% 2 5.56% 1 22.22% 4 18 Persons with developmental disabilities 5.56% 1 50.00% 9 16.67% 3 11.11% 2 16.67% 3 18 Persons with substance addictions 22.22% 4 27.78% 5 11.11% 2 22.22% 4 16.67% 3 18 Persons with HIV/AIDS 16.67% 3 22.22% 4 16.67% 3 27.78% 5 16.67% 3 18 Veterans 66.67% 12 16.67% 3 5.56% 1 0.00% 0 11.11% 2 18 Persons recently release from jail/prison 11.11% 2 33.33% 6 16.67% 3 27.78% 5 11.11% 2 18 Victims of domestic violence 33.33% 6 38.89% 7 11.11% 2 5.56% 1 11.11% 2 18 Answered 18 Skipped 1 Of 0. Please rate the need for the following BUSINESS AND ECONOMIC DEVELOPMENT activities in West Covina: High Need Medium Need Low Need No Need Don't Know Total Attraction of new businesses 66.679/6 12 22.22% 4 5.56% 1 5.56% 1 0.00% 0 18 Retention of existing businesses 77.78% 14 22.22% 4 0.00% 0 0.00% 0 0.00% 0 18 Expansion of existing businesses 38.89% 7 50.00% 9 11.11% 2 0.00% 0 0.00% 0 18 Provision of job training 22.22% 4 50.00% 9 16.67% 3 5.56% 1 5.56% 1 18 Provision of job re-training, such as after a plant closure, etc. 33.33% 6 27.78% 5 27.78% 5 5.56% 1 5.56% 1 18 Provision of technical assistance for businesses 22.22% 4 38.89% 7 22.22% 4 11.11% 2 5.56% 1 18 Development of business incubators 22.22% 4 22.22% 4 22.22% 4 16.67% 3 16.67% 3 18 Development of business parks 11.11% 2 22.22% 4 44.44% 8 16.67% 3 5.56% 1 18 Improvement of facades for businesses 38.89% 7 27.78% 5 16.67% 3 11.11% 2 5.56% 1 18 Other (please specify) 0 Answered 18 Skipped 1