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HomeMy WebLinkAboutItem 13 CDBG Fiscal Year 2016-2017 One-Year Action Plan and Substantial Amendments to Prior Year Action Plans AGENDA ITEM SUMMARY Meeting Date: 5/2/2016 Meeting Type: Regular Meeting Staff Contact/Dept.: Erin Fifield/DPW Staff Phone No: 541-726-2302 Estimated Time: 10 min S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Mandate ITEM TITLE: CDBG FISCAL YEAR 2016-2017 ONE-YEAR ACTION PLAN AND SUBSTANTIAL AMENDMENTS TO PRIOR YEAR ACTION PLANS ACTION REQUESTED: By motion adopt/not adopt the Springfield Community Development Block Grant (CDBG) section of the FY2016-2017 Eugene-Springfield One-Year Action Plan. By motion adopt/not adopt the Substantial Amendments to Prior Year CDBG One- Year Action Plans. ISSUE STATEMENT: One-Year Action Plans must be submitted to HUD prior to the beginning of each fiscal year as amendments to the five-year Eugene-Springfield Consolidated Plan. The Springfield CDBG section of the FY2016-2017 One-Year Action Plan indicates how Springfield intends to use CDBG funds to fulfill the goals established in the Consolidated Plan. Significant changes to prior year One-Year Action Plans require a substantial amendment to the One Year Action Plan in which funds were first awarded, as part of the Consolidated Plan’s Citizen Participation Plan. These actions are in line with Council direction provided during work session on April 18, 2016. ATTACHMENTS: ATT1: Springfield CDBG FY2016-2017 One-Year Action Plan ATT2: CDBG Substantial Amendments to Prior Year Action Plans DISCUSSION/ FINANCIAL IMPACT: FY2016-17 CDBG One Year Action Plan Each spring, the City Council approves funding allocations for use of CDBG funds for the next fiscal year. These amendments were published for comment from March 25, 2016 to April 25, 2016. A public hearing was held on April 7, 2016. Four individuals spoke at the public hearing in support of the HSC, G Street OASIS project, and public infrastructure improvements in low income neighborhoods. The CDAC’s recommended Action Plan was discussed during the April 18, 2016 Council work session. In response to the Council’s request, the only change to this Action Plan from the previous draft discussed is an amount of $4,500 that has been moved from the HSC contribution to the G Street OASIS project. HSC staff indicated it would not be cost-effective to put $4,500 toward winter strategies given federal requirements. The FY16/17 allocation is now $73,204 to the HSC, and $36,500 to the G Street OASIS project. Substantial Amendments to Prior Year Action Plans These amendments were published for comment from March 25, 2016 to April 25, 2016. A public hearing was held on April 7, 2016. No comments were received, and the CDAC recommended approval, provided the City require NEDCO to provide a match contribution for the remaining balance of the Sprout! Code Improvements project. These amendments were discussed during the April 18, 2016 Council work session. Eugene-Springfield FY 2016/17 One Year Action Plan City of Springfield CDBG program 1 City of Springfield – CDBG Program FY 2016/17 One Year Action Plan This summary describes specific housing and community development actions and activities the City of Springfield proposes to undertake with Community Development Block Grant (CDBG) funds during the program year beginning July 1, 2016 and ending June 30, 2017 (Fiscal Year 2016/17). It is one part of the Eugene-Springfield 2016/17 One-Year Action Plan. Communities that are entitled to receive funds from U.S. Department of Housing and Urban Development (HUD) must complete a Consolidated Plan every five years as well as annual Action Plans. The Consolidated Plan provides an assessment of needs of low- and moderate- income persons and a strategic five-year plan for taking actions to address those needs using Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds received by the Cities of Eugene and Springfield. The One-Year Action Plan describes specific actions to be undertaken in a particular year with federal funds. The content of the One-Year Action Plan is guided by HUD. The Cities of Eugene and Springfield each receive an annual entitlement allocation of CDBG funds directly from HUD. The two Cities also receive HOME funds from HUD through the Eugene-Springfield HOME Consortium. The City of Eugene is the lead agency in the HOME Consortium. A summary of planned uses by the Eugene-Springfield HOME Consortium for the use of HOME funds is available from the City of Eugene, as well as a summary of planned uses of Eugene CDBG funds. The following describes only the planned uses of CDBG funds received by the City of Springfield. Coordination and Collaboration The Cities of Eugene and Springfield collaborate in multiple ways to plan for and implement affordable housing and community development activities. The Cities of Eugene and Springfield jointly prepare the five-year Consolidated Plan and coordinate preparation of the One-Year Action Plans, and Comprehensive Annual Performance and Evaluation Report. There are multiple forms for communication and collaboration between the jurisdictions and other public agencies, affordable housing developers, social service providers, and other interested parties. The Lane County Human Services Commission (HSC) and Poverty & Homelessness Board (PHB) offer ongoing opportunities for collaboration and communication. Attachment 1, Page 1 of 6 Eugene-Springfield FY 2016/17 One Year Action Plan City of Springfield CDBG program 2 Citizen Participation The City of Springfield encourages public participation in identifying specific needs and uses of CDBG funds in fiscal year (FY) 2016/17. The City of Springfield Community Development Advisory Committee (CDAC) is composed of community residents and was established by the City of Springfield to make recommendations concerning program policy and project selection to the City Council. On March 25, 2016, Springfield released its DRAFT CDBG One-Year Action Plan on its website and at City Hall. A 30-day public comment period commenced on March 25 and closed on April 25. A public hearing was by the CDAC on April 7, 2016. A summary of Springfield CDBG funded sources and uses is provided as Attachment A. Four people spoke during the hearing to the following issues: G Street OASIS project; Lane County Human Service Commission (HSC) funding; infrastructure needs; and Safe Routes to Schools. Since March 25, no other public comments have been received. Springfield’s City Council considered the recommendations of the CDAC during a work session on April 18, and approved the One-Year Action Plan at a regular session Council meeting on May 2, 2016. Retooling the allocation process In previous years, Springfield has allocated some CDBG funds annually through a competitive Request for Proposals (RFP) process. This year, Springfield identified needed changes to its program and is retooling its RFP allocation process. For FY2017, City Council approved funds toward making strategic improvements in low income neighborhoods through public facilities and improvements, in order to timely allocate and draw funds. In the meantime, Springfield will continue to work with the CDAC, Springfield City Council, and HUD on retooling the allocation process. Springfield also plans to continue to reach out to community partners to understand their priority needs and identify an allocation process that works for them. Activities Benefiting Low- and Moderate-Income Persons Generally, Springfield's CDBG-funded programs and projects are provided to benefit low- income residents living within the city limits of Springfield. Individuals participating in a CDBG- funded program are required to meet HUD Income Guidelines. In order to meet the CDBG National Objective of Benefit to Low and Moderate-Income Persons, CDBG-funded projects must either serve a specific low-income area, or provide tangible benefit to low- and moderate-income clientele (services, economic opportunities, housing). Funded programs and projects undergo periodic staff monitoring to ensure compliance with CDBG regulations. Attachment 1, Page 2 of 6 Eugene-Springfield FY 2016/17 One Year Action Plan City of Springfield CDBG program 3 Activities for the Prevention or Elimination of Slum and Blighted Conditions Another national objective of the CDBG program is the prevention or elimination of slums and blighted conditions in neighborhoods and communities, either by designating a specific area or by addressing conditions on a spot basis. In 2004, Springfield designated its Springfield Downtown Redevelopment Area, in compliance with CDBG regulations. Springfield is currently in the process of expanding the boundary and updating this designation with HUD. Attachment 1, Page 3 of 6 Eugene-Springfield FY 2016/17 One Year Action Plan City of Springfield CDBG program 4 Strategies to Address Priority Needs The City of Springfield receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The City of Springfield's FY 2016/17 CDBG allocation will be $488,028. This is a 4.5% increase from FY 2015/16. The adopted Eugene-Springfield 2015 Consolidated Plan emphasizes goals and strategies to meet priorities needs of low-income renters, low-income homeowners, people experiencing homelessness, and non-homeless special needs populations. Additional needs include increased employment opportunities for low income persons as well as low-income neighborhoods and areas that meet HUD’s definition of slums and blight. The priority strategies described below are intended to address one or more priority needs. Attachment B includes the adopted table of strategies to address the priority needs along with specific metrics to track progress over the five year period. The following narrative describes proposed allocations of Springfield CDBG funds for FY 2016/2017 as it relates to each strategy identified in the Eugene-Springfield 2015 Consolidated Plan. Certain strategies in Springfield are met through the Eugene-Springfield HOME allocations, and are indicated below. More details can be found regarding the allocation of HOME funds in the Eugene 2016/17 DRAFT One-Year Action Plan. Affordable Housing Affordable housing goals are intended to address HUD program objectives to provide decent, safe, and affordable housing and address critical housing needs of low-income people in our community. A total of four affordable housing goals are included in the adopted Eugene-Springfield 2015 Consolidated Plan. Increase the Supply of Affordable Housing • Housing Development – (addressed through HOME Allocation) • CHDO Operating Support – (addressed through HOME Allocation) Rehabilitate Existing Housing Stock • Springfield Emergency Home Repair - The City of Springfield will continue to provide assistance to qualified low-income homeowners through its Emergency Minor Home Repair Program and the Springfield Home Improvement Program (SHIP). These programs are funded from allocation from the new CDBG entitlement grant. Springfield proposes to allocate $110,000 in CDBG funds for this purpose. Attachment 1, Page 4 of 6 Eugene-Springfield FY 2016/17 One Year Action Plan City of Springfield CDBG program 5 Provide Down Payment Assistance for Home Ownership • Springfield Home Ownership Program - The City of Springfield continues to administer the very successful Springfield Homeownership Program (SHOP). The SHOP provides down-payment assistance for low-and very low-income households. Springfield proposes to allocate $100,000 in CDBG funds for this purpose. Remove Barriers to Affordable and Supportive Housing • There are currently no funds allocated to this strategy. Springfield continues to seek opportunities to affirmatively further fair housing and inform others about the Fair Housing Council of Oregon’s Fair Housing Hotline. Community Development Community development goals are intended to satisfy HUD program objectives by providing human services; creating jobs; improving access to public facilities; and furthering neighborhood revitalization, planning, and community-building activities. A total of three community development goals were included in the adopted Eugene-Springfield 2015 Consolidated Plan. Support a Human Services Delivery System • Non-profit services through the Human Services Commission (HSC) – The City of Springfield collaborates with Lane County to fund human service providers. The Human Services Commission (HSC) is the intergovernmental board that guides the use of funds and oversees the activities of agencies receiving funds. Springfield proposes to allocate $73,204 to the HSC to guide the use of these funds. • Non-profit services through G Street OASIS project – This is a new collaborative project for homeless families with children, Participating organizations will provide access to a coordinated set of services offered at multiple locations within the immediate G Street neighborhood in Springfield. Springfield proposes allocating $36,500 to the G Street OASIS project, and plans to collaborate with the HSC to oversee the funds. Promote Economic Development • There are currently no FY 2016/17 funds allocated to this strategy. Make Strategic Investments to Improve Neighborhoods • Public Facilities and Improvements – In low and moderate income neighborhoods, the City would make improvements possibly including but not limited to sidewalk infill, crosswalks, ADA ramps, and improved street lighting. Springfield proposes allocating $253,462 to these improvements. Attachment 1, Page 5 of 6 Attachment A Eugene-Springfield FY 2016/17 One Year Action Plan City of Springfield CDBG program 6 City of Springfield FY 2016/17 CDBG Funding Allocation Summary Sources of Funding FY 2016/17 CDBG Entitlement Grant $ 488,028 Program Income FY 2014/15 Springfield Home Improvement Program (SHIP) loan repayments $ 78,743 FY 2015/16 SHIP loan repayments (estimated) $ 52,000 FY 2016/17 SHIP loan repayments (estimated) $ 65,000 Total sources $ 683,771 Uses of Funding Rehabilitate Existing Housing Stock Home Repair Program for Low-income Homeowners $ 110,000 Provide Down Payment Assistance for Home Ownership Down payment assistance for Low-Income Homebuyers $ 100,000 Support a Human Services Delivery System Non-profit services through the Human Services $ 73,204 Commission (HSC) Non-profit services through G Street OASIS project $ 36,500 Administration and Planning $ 110,605 Make Strategic Improvements to Improve Neighborhoods $ 253,462 Public Facilities and Improvements Total uses $ 683,771 Attachment 1, Page 6 of 6 City of Springfield Substantial Amendments to Prior Year One Year Action Plans for Community Development Block Grant (CDBG) Funds The City of Springfield is making substantial amendments to prior year allocations of Community Development Block Grant (CDBG) funds as follows: # Prior Year Action Plan Amount Funded Prior Year Allocated Activity Proposed Amendment 1. FY 2011/12 $153,577 NEDCO – Site acquisition for Sprout! Regional Food Hub to create Jobs for Low-Moderate Income Persons Amend national objective to address Slum and Blighted conditions 2. FY 2012/13 $23,033 NEDCO – Microenterprise assistance/Food Cart Program to create Jobs for Low-Moderate Income Persons Amend national objective to benefit Low- Moderate Income Persons 3. FY 2012/13 $58,000 NEDCO Sprout! – Purchase of Kitchen equipment for a Public Facility to create Jobs for Low- Moderate Income Persons Amend activity as a Special Economic Development Activity 4. FY 2012/13 $25,000 NEDCO – Downtown Façade Improvement Program to address Slum/Blight Reallocate $12,500 to NEDCO Sprout! for the rehabilitation of a non-profit facility to address Slum and Blighted conditions 5. FY 2012/13 $30,000 Centennial Fountain Plaza – Rehabilitation of a public facility to address Slum/Blight Reallocate $30,000 to NEDCO Sprout! for the rehabilitation of a non-profit facility to address Slum and Blighted conditions 6. FY 2013/14 $30,000 NEDCO – Microenterprise assistance to benefit Low- Moderate Income Persons Reallocate $30,000 to NEDCO Sprout! for the rehabilitation of a non-profit facility to address Slum and Blighted conditions 7. FY 2013/14 $50,000 SEDA – Acquisition of Downtown property for a Public Facility to address Slum/Blight Reallocate $50,000 to NEDCO Sprout! for the rehabilitation of a non-profit facility to address Slum and Blighted conditions 8. FY 2015/16 $93,339 CDBG Program Administration and Planning Increase allocation by $34,849 for a total allocation of $128,188 9. FY 2015/16 $24,737 Unallocated Allocate to Public Facilities and Improvements to benefit Low and Moderate Income Areas Attachment 2, Page 1 of 1