8/10/2021 - ITEM 4 - CONSIDERATION OF PROPOSED AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY 2019-2020 ACTION PLANAGENDA ITEM NO.4
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: August 10, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF PROPOSED AMENDMENT TO THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FY 2019-2020 ACTION PLAN
RECOMMENDATION:
That the City Council take the following actions:
1. Approve the proposed amendment to the CDBG FY 2019-2020 Action Plan; and
2. Approve the following Resolution:
RESOLUTION NO.2021-90 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE
FISCAL YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 (CDBG-CV
AAP AMENDMENT)
BACKGROUND:
The City receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing
and Urban Development (HUD). The overall objective of the federal program is to develop viable urban
communities by providing decent housing and a suitable living environment, and expand economic
opportunities principally for low and moderate income persons.
On June 4, 2019, the City Council approved the City's FY 2019-2020 Action Plan, which describes how funds
will be used to achieve community development goals. According to HUD regulations, these plans can be
amended at any time, with proper notice and considered in a public hearing.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act,
also referred to as the CARES Act, a $2 trillion emergency package intended to support individuals and
businesses affected by the COVID-19 pandemic and economic downturn. The CARES Act provides $5 billion
in federal Community Development Block Grant Coronavirus (CDBG-CV) funding to prevent, prepare for,
and respond to COVID-19. West Covina was previously allocated $473,804. The City was allocated an
$709,140 in additional CDBG-CV funding for a total of $1,182,944. The funding will be administered under
CDBG regulations, with specific waivers and flexibilities from HUD.
1/2
DISCUSSION:
Including this funding for activities requires the City to amend its FY 2019-2020 Action Plan. The City is
proposing to amend its FY 2019-2020 Action Plan to include CDBG-CV funding and CDBG-CV funded
activities. Pre -award costs for such activities may be incurred, consistent with HUD regulations (24 CFR
270.200(h)).
The proposed amendment consists of including the new allocation of $790,140 in CDBG-CV funding for
public social services to respond to COVID-19 challenges, in the FY 2019-2020 Action Plan. The City
may approve subsequent amendments to the Plan relative to activities and funding allocations.
The CARES Act requires a 5-day public review period. The public review period began on August 5, 2021.
No comments have been received as of the writing of this report.
The proposed amendment to the Action Plan requires HUD approval.
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The City Attorney's Office has reviewed the resolution and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Approve the staff recommendation; or
2. Provide alternative direction.
Prepared by: Kelly McDonald, Public Services Manager
Fiscal Impact
FISCAL IMPACT:
The City will receive an allocation of $709,140 in CDBG-CV fund through the CARES Act. Approval of the
attached budget amendment is necessary to appropriate funding. There will be no impact to the General Fund
resulting from the amendment.
Attachments
Attachment No. 1 - Quick Guide to CDBG Eligible Activities
Attachment No. 2 - CARES Flexibilities
Attachment No. 3 - Budget Amendment
CITY Respond to the Global COVID-19 Pandemic
COUNCIL
GOALS &
OBJECTIVES:
212
ATTACHMENT NO. 1
Quick Guide to CDBG Eligible Activities to Support Coronavirus and Other Infectious Disease Response
REVISED April 6, 2020
Grantees should coordinate with local health authorities before undertaking any activity to support state or local pandemic
response. Grantees may use Community Development Block Grant (CDBG) funds for a range of eligible activities that
prevent and respond to the spread of infectious diseases such as the coronavirus.
Examples of Eligible Activities to Support Coronavirus and Other Infectious Disease Response
For more information, refer to applicable sections of the Housing and Community Development Act of 1974 (for
State CDBG Grantees) and CDBG regulations (for Entitlement CDBG grantees).
Buildings and Improvements, Including Public Facilities
Acquisition, construction,
Construct a facility for testing, diagnosis, or treatment.
reconstruction, or installation
of public works, facilities, and
Rehabilitate a community facility to establish an infectious disease treatment clinic.
Acquire and rehabilitate, or construct, a group living facility that may be used to
centralize patients undergoing treatment.
site or other improvements.
See section 105(a)(2) (42
U.S.C. 5305(a)(2)); 24 CFR
570.201(c).
Rehabilitation of buildings and
Rehabilitate a commercial building or closed school building to establish an infectious
improvements (including
disease treatment clinic, e.g., by replacing the HVAC system.
interim assistance).
See section 105(a)(4) (42
U.S.C. 5305(a)(4)); 24 CFR
Acquire, and quickly rehabilitate (if necessary) a motel or hotel building to expand
capacity of hospitals to accommodate isolation of patients during recovery.
Make interim improvements to private properties to enable an individual patient to
570.201(0; 570.202(b).
remain quarantined on a temporary basis.
Assistance to Businesses, including Special Economic Development Assistance
Provision of assistance to
Provide grants or loans to support new businesses or business expansion to create jobs
private, for -profit entities,
and manufacture medical supplies necessary to respond to infectious disease.
when appropriate to carry out
an economic development
project.
See section 105 a
O( 17) (42
Avoid job loss caused by business closures related to social distancing by providing
short-term working capital assistance to small businesses to enable retention of jobs
held by low- and moderate -income persons.
U.S.C. 5305(a)(17)); 24 CFR
570.203(b).
Provision of assistance to
Provide technical assistance, grants, loans, and other financial assistance to establish,
microenterprises.
stabilize, and expand microenterprises that provide medical, food delivery, cleaning,
See section 105(a)(22) (42
and other services to support home health and quarantine.
U.S.C. 5305(a)(22)); 24 CFR
570.201(o).
Provision of New or Quantifiably Increased Public Services
Following enactment of the
Carry out job training to expand the pool of health care workers and technicians that
CARES Act', the public
are available to treat disease within a community.
services cap' has no effect on
CDBG-CV grants and no
Provide testing, diagnosis or other services at a fixed or mobile location.
Increase the capacity and availability of targeted health services for infectious disease
response within existing health facilities.
effect on FY 2019 and 2020
CDBG grant funds used for
coronavirus efforts.
Provide equipment, supplies, and materials necessary to carry -out a public service.
See section 105(a)(8) (42
Deliver meals on wheels to quarantined individuals or individuals that need to
maintain social distancing due to medical vulnerabilities.
U.S.C. 5305(a)(8)); 24 CFR
570.201(e).
PI ning, Capacity Building, and
Technical Assistance
States only: planning grants
Grant funds to units of general local government may be used for planning activities
and planning only grants.
in conjunction with an activity, they may also be used for planning only as an activity.
See section 105(a)(12).
These activities must meet or demonstrate that they would meet a national objective.
These activities are subject to the State's 20 percent administration, planning and
technical assistance cap.
States only: use a part of to
Grant funds to units of general local government to hire technical assistance providers
support TA and capacity
to deliver CDBG training to new subrecipients and local government departments that
building.
are administering CDBG funds for the first time to assist with infectious disease
See section 106(d)(5) (42
U.S.C. 5306(d)(5).
response. This activity is subject to the State's 3 percent administration, planning and
technical assistance cap.
Entitlement only: data
Gather data and develop non -project specific emergency infectious disease response
gathering, studies, analysis,
plans.
and preparation of plans and
the identification of actions
that will implement such
plans. See 24 CFR 570.205.
Planning Considerations
Infectious disease response conditions rapidly evolve and may require changes to the planned use of funds:
• CDBG grantees must amend their Consolidated Annual Action Plan (Con Plan) when there is a change to the
allocation priorities or method of distribution of funds; an addition of an activity not described in the plan; or a
change to the purpose, scope, location, or beneficiaries of an activity (24 CFR 91.505).
• If the changes meet the criteria for a "substantial amendment" in the grantee's citizen participation plan, the
grantee must follow its citizen participation process for amendments (24 CFR 91.105 and 91.115).
• Under the CARES Act, CDBG grantees may amend citizen participation and Con Plans concurrently in order to
establish and implement expedited procedures with a comment period of no less than 5-days.
Resources
The Department has technical assistance providers that may be available to assist grantees in their implementation of
CDBG funds for activities to prevent or respond to the spread of infectious disease. Please contact your local CPD Field
Office Director to request technical assistance from HUD staff or a TA provider.
• Submit your questions to: CPDOuestionsAnswerednhud.gov
• Coronavirus (COVID-19) Information and Resources: hms://www.hud.izov/coronavirus
• CPD Program Guidance and Training: https://www.hudexchange.info/program-support
' On March 27, 2020, President Trump approved the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136) (CARES Act). The
CARES Act makes available $5 billion in CDBG coronavirus response (CDBG-CV) funds to prevent, prepare for, and respond to coronavirus.
2 Section 105(a)(8) of the HCD Act caps public service activities at 15 percent of most CDBG grants. Some grantees have a different percentage cap.
ATTACHMENT NO.2
,YfHrY
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
04 I II II WASHINGTON, DC 20410-7000
9 April 2020
ASSISTANT SECRETARY FOR
COMMUNITY PLANNING AND DEVELOPMENT
MEMORANDUM FOR: All Fiscal Year 2020 and 2019 CDBG and CDBG-CV Grantees and
All CPD Field Office Directors
FROM: John Gibbs, Acting Assistant Secretary for Community Planning and
Development
SUBJECT: CARES Act Flexibilities for CDBG Funds Used to Support
Coronavirus Response and plan amendment waiver
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) (Public Law 116-136)
makes available $5 billion in supplemental Community Development Block Grant (CDBG) funding
for grants to prevent, prepare for, and respond to coronavirus (CDBG-CV grants)_ Additionally, the
CARES Act provides CDBG grantees with flexibilities that make it easier to use CDBG-CV grants
and fiscal years 2019 and 2020 CDBG Grants for coronavirus response and authorizes HUD to
grant waivers and alternative requirements.
The Department has announced the allocations of the first $2 billion in CARES Act funding
for CDBG grantees, as well as $1 billion for Emergency Solutions Grants (ESG) and $53.7 million
for Housing Opportunities for Persons With AIDS (HOPWA). You can find the allocations at
www.hud.eov/oroeram offices/comm nlannine/budeet/fv20/.
This memorandum transmits the attached CARESAct Flexibilities for CDBG Funds Used to
Support Coronavirus Response Guide (Guide). The Guide describes the immediate availability of a
5-day public comment period for amendments and new plan submissions, uncaps the percentage of
CDBG funding for public services to prevent, prepare for, and respond to coronavirus, as well as
other flexibilities. Please note that these new provisions are not only applicable to the $5 billion in
CDBG funding from the CARES Act but many of the new provisions are also applicable to
FY2019and FY2020 CDBG funding. This broad applicability provides grantees with flexibility to
help address the challenges facing our nation.
Grantees are advised to amend or prepare their plans as soon as possible and not to wait for
the pending Federal Register notice, which may provide additional waivers and alternative
requirements. Similarly, grantees should not wait for HUD to allocate the remaining nearly $3
billion of the $5 billion provided by the CARES Act for the CDBG program. Upon publication of
the Federal Register notice and subsequent allocations, grantees receiving allocations will then
amend plans accordingly.
Grantees should proceed with all amendments and plans under these new provisions by
adding the CDBG-CV allocation in their plans as an available resource for the year. The CARES
Act permits HUD to waive, or specify alternative requirements for, any provision of any statute or
regulation that the Secretary administers in connection with the CDBG-CV funds, FY2019 and
FY2020 CDBG funds (except for requirements related to fair housing, nondiscrimination, labor
standards, and the environment), upon a finding by the Secretary that any such waivers or
w .hud.gov espanol.hud.gov
alternative requirements are necessary to expedite or facilitate the use of such amounts to prevent,
prepare for, and respond to coronavirus.
To expedite grantees' use of CDBG-CV funds, HUD is waiving the requirements at 42
U.S.C. 12705(a)(2) to the extent it requires updates to the housing and homeless needs assessment,
housing market analysis, and strategic plan and 24 CFR 91.220 and 91.320 to the extent the action
plan is limited to a specific program year to permit grantees to prepare substantial amendments to
their most recent annual action plan, including their 2019 annual action plan. Grantees must
identify the proposed use of all funds and how the funds will be used to prevent, prepare for, and
respond to coronavims.
The Department is also waiving 24 CFR 91.505 to facilitate the use of the CDBG-CV funds
to the extent necessary to require submission of the substantial amendment to HUD for review in
accordance with 24 CFR 91.500. To receive a CDBG-CV grant, a grantee must also submit a SF-
424, SF-424D and the certifications at 24 CFR 91.225(a) and (b) or 24 CFR 91325(a) and (b)_
The Guide addresses many of the Field's initial questions. Email inquiries to
CPDOuestionsAnsweredQhud.gov will continue to receive individual replies and guidance. HUD
will also be batching questions and responses and periodically making them available as FAQs.
Additional resources will continue to be posted to www.hudexchange.info/proffams/cdbg/diseaseJ.
Thank you for the work you and your staff do with our communities in the fight against the
coronavirus.
CARES Act Flexibilities for CDBG Funds Used to Support Coronavirus Response
April 9, 2020
President Trump has signed The Coronavirus Aid, Relief and Economic SecurityAct (CARES Act). The CARES Act:
• Makes available $5 billion in supplemental Community Development Block Grant (CDBG) funding for grants to
prevent, prepare for, and respond to coronavirus (CDBG-CV grants);
• Provides flexibilities for CDBG grantees to make it easier to use CDBG-CV grants and fiscal years 2019 and
2020 CDBG grants for coronavirus response and authorizes HUD to grant waivers and alternative requirements;
• Requires CDBG-CV grantees to prevent the duplication of benefits, which means grant funds may not be used to
pay costs if another source of financial assistance is available to pay that cost.
HUD will publish a Federal Register notice describing the requirements for CDBG-CV grants. The notice will also include
waivers and alternative requirements for CDBG-CV and fiscal year 2019 and 2020 CDBG grants. A grantee may submit a
CDBG-CV action plan substantial amendment to its most recent accepted CDBG action plan for the first CDBG-CV
allocation before the notice is published. To apply for CDBG-CV grants, grantees may follow existing regulatory
requirements for a substantial amendment to the grantee's action plan that describes the amount of CDBG-CV funds
available in the first allocation and planned use of funds, in accordance with existing requirements and the flexibilities in
the CARES Act, summarized below. HUD will publish a Q&A document with further information on this process.
Grantees may use CDBG-CV and CDBG funds for a range of activities to prevent, prepare for, and respond to
coronavirus. For examples, see the Quick Guide to CDBG Activities for Infectious Disease Response.
Summary of CARES Act Provisions for Coronavirus Response With CDBG-CV and CDBG Grants
For more information, refer to applicable sections of the CARES Act, Housing and Community Development Act of
1974 (for State CDBG Grantees) and CDBG regulations (for Entitlement CDBG grantees).
Description of Program Flexibility
Applicability to CDBG-CV and CDBG Grants
Public Service Activities
Eliminates the 15 percent cap' on the amount of
CDBG-CV
Immediately
grant funds that can be used for public services
Available
activities.
Following enactment, the cap in section 105(a)(8) of
CDBG FY 19 and
Immediately
the HCD Act and 24 CFR 570.201(e) has no effect on
FY 20 Grants
Available
CDBG Grants
Not v
CDBG-CV grants and no effect on FY2019 and 2020
CDBG grant funds used for coronavirus efforts.
before FY 19
Available X
Reimbursement of Costs
Provides that grantees may use CDBG-CV grant
CDBG-CV
Immediately
funds to cover or reimburse costs to prevent, prepare
Available
for, and respond to coronavirus incurred by a State or
locality, regardless of the date on which such costs
CDBG FY 19 and
See current x
were incurred, when those costs comply with CDBG
FY 20 Grants
regulations.
requirements. For other grants, pre -agreement and
pre -award cost authority is available under 24 CFR
CDBG Grants
See current x
570.489(b) (states) and 570.200(h) (entitlements).
before FY 19
regulations.
Section 105(a)(8) of the Housing and Community Development Act of 1974, provides a different percentage cap for some grantees.
Description of Program Flexibility
Applicability to CDBG-CV and CDBG Grants
Citizen Participation and Public Hearings for Consolidated Plans (including Action Plans)
Provides that grantees may amend citizen
CDBG-CV
Immediately
participation plans to establish expedited procedures
Available
to draft, propose, or amend consolidated plans.
Expedited procedures must include notice and
CDBG FY 19 and
Immediately
reasonable opportunity to comment of no less than 5
FY 20 Grants
Available
days. The 5-day period can run concurrently for
comments on the action plan amendment and
CDBG Grants
Not X
amended citizen participation plans.
before FY 19
Available
In -person public hearings are not required. Grantees
may meet public hearing requirements with virtual
public hearings if: 1) national/local health authorities
recommend social distancing and limiting public
gatherings for public health reasons; and 2) virtual
hearings provide reasonable notification and access
for citizens in accordance with the grantee's
certifications, timely responses from local officials to
all citizen questions and issues, and public access to
all questions and responses.
Deadline to Submit Consolidated Plans (including Annual Action Plans
Extends the deadline for grantees to submit action
CDBG-CV
Immediately
plans and other updates to their consolidated plans
Available
submissions for fiscal years 2019* and 2020 to
CDBG FY 19* and
Immediately
August 16, 2021.
Without extension, the deadline for fiscal year 2020
FY 20 Grants
Available.
grants would be August 16, 2020, in accordance with
section 116(b) of the HCD Act and 24 CFR 91.15.
CDBG Grants
Not x
*The deadline for fiscal year 2019 passed on August
before FY 19
applicable.
16, 2019 (plans due then have been submitted).
giver and Alternative Requirement Authority
Authorizes the Secretary to issue statutory and
CDBG-CV
Immediately
regulatory waivers/altemative requirements for
Available
CDBG-CV and some CDBG funds when necessary
CDBG FY 19 and
Immediately
to expedite or facilitate the use of grant funds to
prevent, prepare for, and respond to coronavirus.
FY 20 Grants
Available.
Prohibits waivers/alternative requirements related to
fair housing, nondiscrimination, labor standards, and
CDBG Grants
Not x
the environment.
before FY 19
applicable.
HUD has additional regulatory waiver and statutory
suspension authorities that it may use for CDBG
Grants before fiscal year 2019 if necessary.
Submit your questions to: CPDOuestionsAnsweredCchhud.gov
ATTACHMENT NO.3
RESOLUTION NO.2021-90
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING A BUDGET
AMENDMENT FOR THE FISCAL YEAR COMMENCING
JULY 1, 2021 AND ENDING JUNE 30, 2022 (CDBG-CV AAP
AMENDMENT)
WHEREAS, the City Manager, on or about June 15, 2021, submitted to the City Council
a proposed budget for the appropriation and expenditure of funds for the City for West Covina for
Fiscal Year 2021-22; and
WHEREAS, following duly given notice and prior to budget adoption, the City Council
held public meetings, considered and evaluated all comments, and adopted a budget for the fiscal
year commencing July 1, 2021 and ending June 30, 2022; and
WHEREAS, amendments must periodically be made to the budget to conform to changed
circumstances following adoption of the budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves Budget Amendment No. 013, attached
hereto as Exhibit A, related to CDBG-CV funds.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter
the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this IOth day of August, 2021.
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
Letty Lopez-Viado
Mayor
ATTEST
Lisa Sherrick
Assistant City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do
hereby certify that the foregoing Resolution No. 2021-90 was duly adopted by the City Council of
the City of West Covina, California, at a regular meeting thereof held on the 1 Oth day of August,
2021, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
EXHIBIT A
BUDGET AMENDMENT
CITY OF WEST COVINA
BUDGET AMENDMENT
Date: 8/10/21
Requested by: Kelly McDonald
Dept/Div: Public Services
EXPENDITURES
BA # 013
Posted By:
Date Posted:
Fiscal Year: 2021-2022
Amount: CDBG-CV
$709,140
Account Number
Dept/Account Description
Current Budget
Proposed
Amendment
Amended Budget
225.61.5121.6120
Contract Services
96 300.00
709 140.00
805 440.00
REVENUES
Account Number
Account Description
Current Budget
Proposed
Amendment
Amended Budget
225.61.4551
CDBG-CV
96 300.00
709 140.00
805 440.00
REASON/JUSTIFICATION (Please be specific)
Federal funds to respond to COVID-19 pandemic
APPROVALS
City Council Approval Date (if required, attach minutes):
Dept Head Approval:
Date:
Finance Director: Date:
Funds Available? ❑ Yes ❑No
❑ Approval Not Required
City Manager: Date:
Comment: ❑ Approved ❑ Denied