HomeMy WebLinkAboutItem 01 Community Development Block Grant (CDBG) FY18 Allocation Process AGENDA ITEM SUMMARY Meeting Date: 1/3/2017
Meeting Type: Work Session
Staff Contact/Dept.: Erin Fifield / DPW
Staff Phone No: 541-726-2302
Estimated Time: 20 minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Promote and Enhance
our Hometown Feel
while Focusing on
Livability and
Environmental Quality
ITEM TITLE: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY18
ALLOCATION PROCESS
ACTION
REQUESTED:
Approve a draft FY18 CDBG One-Year Action Plan to be published for public
comment.
ISSUE
STATEMENT:
The purpose of the annual action plan is to indicate how the City intends to use
federal CDBG funds to fulfill the goals established in the Eugene-Springfield 2015-
2020 Consolidated Plan. Within the requirements established in the Consolidated
Plan, each year the City needs to publish a draft One Year Action Plan for public
comment.
ATTACHMENTS: ATT1 – Council Briefing Memo
ATT2 – CDBG FY18 Funding Options
DISCUSSION/
FINANCIAL
IMPACT:
The City’s CDBG funds are an annual allocation from the U.S. Department of
Housing and Urban Development (HUD) for housing and community development.
Each spring, the City Council approves an annual funding allocation for use of
CDBG funds through the One-Year Action Plan (OYAP). The proposed uses of
funds must align with the local community needs and strategic plan identified in the
2015-2020 Eugene-Springfield Consolidated Plan.
In Fall 2016, city staff researched and identified the need for certain strategies
identified in the Consolidated Plan for FY18, including surveying local non-profits
to assess their current capital needs. The Springfield Community Development
Advisory Committee (CDAC) met on December 8, 2016 to discuss potential
strategies, and has recommended to Council an allocation for CDBG funds for
fiscal year 2018 (FY18).
Next steps: Following Council’s direction, staff will publish the draft OYAP for
public comment in February. Depending on Council priorities, staff may also
administer a Request for Proposals (RFP) to local non-profit organizations for
capital improvements. In April, Council will be asked to finalize the CDBG FY18
OYAP, given public comment and a final recommendation by the CDAC.
M E M O R A N D U M City of Springfield
Date: 1/3/2017
To: Gino Grimaldi COUNCIL
From: Anette Spickard
Erin Fifield
BRIEFING
Subject: CDBG FY18 ALLOCATION MEMORANDUM
ISSUE: The purpose of the annual action plan is to indicate how the City intends to use
federal Community Development Block Grant funds to fulfill the goals established in the
Eugene-Springfield 2015-2020 Consolidated Plan. Within the requirements established in the
Consolidated Plan, each year the City needs to publish a draft One Year Action Plan for
public comment.
COUNCIL GOALS/
MANDATE:
Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental
Quality
BACKGROUND:
As conveyed in the Communication Packet Memo (CPM) from 9/12/2016 – “CDBG Allocation
Process Improvements” – the City’s CDBG program continues to undergo transition in response
to the 2015 US Department of Housing and Urban Development (HUD) monitoring. City staff
have worked with HUD to identify specific criteria to be used in the allocation of the CDBG
funds that will meet HUD’s requirements and improve the administration of the program,
specifically:
Fund fewer projects at one time to ensure staff can provide adequate oversight of
grantee compliance with federal regulations
Establish criteria for selection of projects to ensure projects are eligible for federal funds
and can be completed in a timely manner
Update the fund allocation process to include these criteria and a mechanism for
prioritization of projects based on Consolidated Plan strategies
Educate CDBG award recipients on their obligation for compliance with reporting
requirements and to ensure timely and eligible use of federal funds
To better understand the current needs for projects, City staff conducted a survey of local non-
profits to better understand their capital needs, particularly the nature of the project, projected
timeline for completion, and estimated project cost. Twenty-four (24) different organizations
responded with one to four identified projects that could benefit from CDBG funds. Staff
evaluated these responses against the criteria noted above, as well as recent direction from
Council regarding a housing strategy (see below):
14 projects could be completed within 1 year
8 projects estimate their cost to be greater than $50,000
5 projects are housing related
In Fall 2016, City staff also began working on an affordable housing strategy by understanding
the housing needs of our community. Our findings indicate there is a need for more housing at
all price points, given low vacancy rates and the high number of renters and homeowners who
are cost-burdened. During the Council work session on 11/28, Council indicated support for
Attachment 1 Page 1 of 4
MEMORANDUM 12/29/2016 Page 2
prioritizing CDBG funds for housing. Council will continue discussion of an affordable housing
strategy in February.
COMPARING CONSOLIDATED PLAN STRATEGIES AND CURRENT NEEDS
City staff compared the strategies in the Eugene-Springfield’s 2015-2020 Consolidated Plan
with the current needs in our community to understand whether CDBG funds could help address
those needs given the above criteria:
Consolidated Plan Strategy Staff findings
1. Increase the supply of
affordable housing
Staff researched and discussed affordable housing needs
with City Council during work sessions on 10/10/16 and
11/28/16 as part of developing an affordable housing
strategy. Council indicated interest in prioritizing CDBG
funds for housing, including land acquisition.
2. Rehabilitate existing
housing stock
The City’s Emergency Home Repair (EHR) program has
continued to help low-income homeowners, yet current
funding is projected to still be available for much of
FY18.
3. Provide down-payment
assistance for home
ownership
The City’s SHOP program has continued to help low-
income clients become homeowners, yet current funding
is projected to still be available for much of FY18.
4. Remove barriers to
affordable and supportive
housing
The City will begin the process to update its fair housing
plan in 2017.
5. Support a human services
delivery system
The CDBG contribution to the Human Services
Commission (HSC) continues to support the work of
local non-profits
Survey of local non-profits indicate a need for CDBG
funds for projects to address capital improvements,
including some related to housing. [A Request for
Proposals (RFP) and evaluation of applicants would need
to be conducted to further vet projects.]
6. Promote economic
development and
employment opportunities
The Springfield Economic Development Agency has
recently provided funding for entrepreneurship training
through Lane Workforce Partnership.
7. Make strategic
improvements to improve
low income neighborhoods
The City’s Department of Public Works has a list of
sidewalk gaps and needed improvements in low income
areas near schools and parks.
Attachment 1 Page 2 of 4
MEMORANDUM 12/29/2016 Page 3
CDBG ESTIMATED REVENUES (FY 18)
FY 18 Entitlement Funds (estimated) $480,000
Prior Year Resources to reallocate:
$81,500 (Land acquisition: Glenwood Place)
$24,500 (Microenterprise assistance: NEDCO HATCH)
$12,000 (Non-profit capital assistance: ARC)
$118,000
TOTAL $598,000
CDAC RECOMMENDATION:
The Community Development Advisory Committee (CDAC) met on December 8, 2016 to
review the Consolidated Plan strategies, staff’s findings for current needs, as well as Council’s
direction to prioritize CDBG funds for housing. The CDAC’s discussion centered on balancing
funding for all identified needs (including housing, community non-profits, and current
programs) with the HUD criteria to fund fewer projects and ensure projects can be completed in
a timely manner. Further uncertainty was discussed regarding the market for land acquisition, as
well as the types of projects that would come in through an RFP. See ATT2 – CDBG FY18
FUNDING OPTIONS.
Ultimately, the CDAC recommends to Council the following draft FY18 One-Year Action Plan:
CDGB EXPENDITURES (estimated) CDAC recommendation
Consolidated Plan Strategy Activity Amount
1. Increase the supply of
affordable housing Acquisition $225,000
2. Rehabilitate existing
housing stock affordable to
low-income persons
Emergency Home Repair
Program (EHR) $55,000
3. Provide down payment
assistance for home
ownership
Springfield
Homeownership Program
(SHOP)
$50,000
5. Support a human services
delivery system to address
the needs of homeless
persons and special needs
populations
Human Services
Commission (HSC)
contribution
(15% max)
$72,000
TBD Request for Proposals
(RFP)* $100,000
Grant Administration
(20% max) $96,000
TOTAL $598,000
Attachment 1 Page 3 of 4
MEMORANDUM 12/29/2016 Page 4
*The CDAC further supports the following criteria for selecting projects through the RFP:
Priority for housing-related activities
Activity must be completed in a timely manner (within FY2017-18)
Subrecipient has the capacity to carry out activity (based on current staff and past
performance)
Overall project selection creates minimum administrative overhead
If Council supports an RFP for CDBG funds, staff will create an evaluation tool to ensure
selected projects meet the HUD-approved criteria for improved administration of the CDBG
program.
RECOMMENDED ACTION: Approve a draft CDBG FY18 One-Year Action Plan to be
published for public comment. Council will have the opportunity in April 2017 to potentially
amend and finalize allocations in the One-Year Action Plan, with final approval planned for
May 2017.
Attachment 1 Page 4 of 4
FY2017-18 CDBG One-Year Action Plan
OPTIONS
Attachment 2
CDGB EXPENDITURES (estimated) Option A Option B CDAC
recommendation
Consolidated Plan Strategy Activity Amount Amount Amount
1. Increase the supply of
affordable housing Acquisition $325,000 $125,000 $225,000
2. Rehabilitate existing
housing stock affordable
to low-income persons
Emergency Home Repair
Program (EHR) $55,000 $55,000 $55,000
3. Provide down payment
assistance for home
ownership
Springfield Homeownership
Program (SHOP) $50,000 $50,000 $50,000
5. Support a human services
delivery system to
address the needs of
homeless persons and
special needs populations
Human Services Commission
(HSC) contribution
(15% max)
$72,000 $72,000 $72,000
TBD Request for Proposals (RFP)* $0 $200,000 $100,000
Grant Administration
(20% max) $96,000 $96,000 $96,000
TOTAL $598,000 $598,000 $598,000
*Criteria for project selection through an RFP:
Priority for housing-related activities
Activity must be completed in a timely manner (within FY2017-18)
Subrecipient has the capacity to carry out activity (based on current staff and past performance)
Overall project selection creates minimum administrative overhead
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