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HomeMy WebLinkAboutItem 27 CDBG Fiscal Year 2017-18 One-Year Action Plan and Substantial Amendments to Prior Year Action Plans. AGENDA ITEM SUMMARY Meeting Date: 6/19/2017 Meeting Type: Regular Meeting Staff Contact/Dept.: Erin Fifield/DPW Staff Phone No: 541-726-2302 Estimated Time: 5 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: Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality ITEM TITLE: CDBG FISCAL YEAR 2017-18 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 FY 2017-18 Eugene-Springfield One Year Action Plan, and support the proposed allocation method if the CDBG Entitlement grant amount changes from the estimated allocation. By motion adopt/not adopt the Substantial Amendments to Prior Year CDBG One Year Action Plans. ISSUE STATEMENT: The U.S. Department of Housing and Urban Development (HUD)’s CDBG entitlement program allocates an annual grant to the City of Springfield in order to develop decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons. By August 16, 2017, City Council must approve a strategy and funding allocations for use of CDBG funds for the next fiscal year in a document called the One Year Action Plan. Any proposed substantial amendments to prior year action plans must follow the same approval process. Both the proposed FY2017/18 CDBG One Year Action Plan and substantial amendments to prior year plans prioritize the Consolidated Plan’s strategy to increase the supply of affordable housing. ATTACHMENTS: ATT1: FY2017/18 CDBG One Year Action Plan ATT2: Substantial Amendments to Prior Year Action Plans DISCUSSION/ FINANCIAL IMPACT: City Council discussed both the FY2017/18 CDBG One Year Action Plan and the substantial amendments during the June 12, 2017 work session. The Springfield CDBG section of the FY2017/18 One Year Action Plan indicates how Springfield intends to use CDBG funds to fulfill the goals established in the five-year Eugene-Springfield Consolidated Plan. The timing of federal budget allocations results in the need for an approval of strategies with an estimated allocation. The One Year Action Plan includes a proposed allocation method that would be applied to adjust the estimated allocation to be made when actual funding amounts are known. Significant changes to prior 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 June 12, 2017. City of Springfield – CDBG Program FY 2017/18 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, 2017 and ending June 30, 2018 (Fiscal Year 2017/18). It is one part of the Eugene-Springfield 2017/18 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 Pl an 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. Attachement 1, Page 1 of 7 Citizen Participation The City of Springfield encourages public participation in identifying specific needs and uses of CDBG funds in fiscal year (FY) 2017/18. 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 February 15, 2017, Springfield released its DRAFT CDBG One-Year Action Plan on its website and at City Hall. A 30-day public comment period commenced on February 15 and closed on March 17. Additionally, a public hearing was held by the CDAC on March 16, 2017. One written comment was received, identifying the need for housing in Springfield for women who have experienced chronic homelessness. At the public hearing, one person testified in support of local non-profits’ needs for capital funds. The CDAC held a discussion, and voted to recommend to City Council the summary of Springfield CDBG funded sources and uses as provided as Attachment A. Springfield’s City Council will consider the recommendation of the CDAC and public comments received before approving the One-Year Action Pl an, which is scheduled for June 19, 2017. Affordable Housing Strategy The City is currently developing an affordable housing strategy to address the low supply of housing and to foster housing choice and affordability in the short and long term. Springfield is focused on developing a strategy that will make the most impact on addressing Springfield’s affordable housing needs. In previous years, Springfield has allocated some CDBG funds annually through a competitive Request for Proposals (RFP) process and relied on applications received to determine which strategies in the Consolidated Plan will be addressed. This year, given the affordable housing needs identified, City Council is prioritizing the strategy of increasing the supply of affordable housing, and is proposing an allocation toward that strategy. There may be the option for a competitive RFP regarding how that strategy will be implemented, but that process has yet to be developed. 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. All of the allocations proposed in Springfield’s One Year Action Plan for FY 2017/18 would benefit low- and moderate-income persons. Attachement 1, Page 2 of 7 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 2014, Springfield re-designated a Springfield Downtown Redevelopment Area, in compliance with CDBG regulations. The Downtown Redevelopment Area is pictured below. Springfield’s proposed One Year Action Plan for FY 2017/18 does not include an allocation toward the elimination of Slum and Blight. Attachement 1, Page 3 of 7 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 estimates its FY 2017/18 CDBG allocation to be $480,000. (Springfield's FY 2016/17 CDBG allocation was $488,028.) At this time, HUD has not yet released the CDBG allocation for FY 2017/18. FY2018 CDBG One Year Action Plan DRAFT – Attachment A shows the estimated sources of funding for FY2018. When HUD announces the actual City’s CDBG allocation for FY2018, the City will adjust this allocation for funding uses as follows: Rehabilitate existing housing stock – allocate at $55,000 Provide down payment assistance for home ownership – allocate at $50,000 Support a Human Services Delivery System – allocate at 15% of new entitlement funds Administration and Planning – allocate at 20% of new entitlement funds Increase the supply of affordable housing – Adjust allocation based on the new entitlement allocation for FY2018, and the above calculations. 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 2017/2018 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 2017/18 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. Attachement 1, Page 4 of 7 Increase the Supply of Affordable Housing Housing Development – The City of Springfield recognizes that the housing supply is low, particularly affordable housing for low-income residents, and aims to add a net increase of units to the housing supply. Through land/property acquisition, potentially paired with site development and/or HOME funds, the City of Springfield proposes to allocate $207,000 of estimated new entitlement funds toward supporting new housing development. Additional funds allocated through the FY 2017/18 HOME Allocation will help to address this strategy. (see FY 2017/18 HOME Allocation) CHDO Operating Support – (see FY 2017/18 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. These programs are funded from allocation from the new CDBG entitlement grant. Springfield proposes to allocate $55,000 in CDBG funds for this purpose. 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 $50,000 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 Attachement 1, Page 5 of 7 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. Agencies to be funded will be determined through a competitive Request for Proposals (RFP) administered by the HSC. Springfield proposes to allocate 15% of New Entitlement funds, estimated to be $72,000, to the HSC. Promote Economic Development There are currently no FY 2017/18 funds allocated to this strategy. Make Strategic Investments to Improve Neighborhoods There are currently no FY 2017/18 funds allocated to this strategy. Attachement 1, Page 6 of 7 City of Springfield FY 2017/18 CDBG Funding Allocation Summary - DRAFT Sources of Funding FY 2017/18 CDBG Entitlement Grant (estimated) $ 480,000 Total sources $ 480,000 Uses of Funding Increase the supply of affordable housing Acquisition, site improvements, clearance, etc. $ 207,000 Rehabilitate Existing Housing Stock Home Repair Program for Low-income Homeowners $ 55,000 Provide Down Payment Assistance for Home Ownership Down payment assistance for Low-Income Homebuyers $ 50,000 Support a Human Services Delivery System Non-profit services through the Human Services $ 72,000 Commission (HSC) Administration and Planning $ 96,000 Total uses $ 480,000 Attachement 1, Page 7 of 7 The City of Springfield is proposing substantial amendments to prior year allocations of Community Development Block Grant (CDBG) funds as follows: # Prior Year Action Plan Amount Amended Prior Year Allocated Activity Proposed Amendment 1. FY 2012/13 $12,000 ARC of Lane County - Public facility and improvement to create jobs for low-moderate income persons. Reallocate program funds toward acquisition to address housing for low- moderate income persons. 2. FY 2013/14 $81,580 HACSA – Site acquisition for Glenwood Place to create housing units for Low-Moderate Income Persons Amend activity to not be project specific, but to apply to any acquisition activity to address housing for low-moderate income persons. 3. FY 2014/15 $37,815.84 NEDCO – Microenterprise assistance for Low-Moderate Income Persons Reallocate remaining program funds toward acquisition to address housing for low-moderate income persons. Attachement 2, Page 1 of 1