HomeMy WebLinkAboutItem 01 Community Development Block Grant AGENDA ITEM SUMMARY Meeting Date: 4/23/2018
Meeting Type: Work Session
Staff Contact/Dept.: Erin Fifield / DPW Staff Phone No: 541-726-2302
Estimated Time: 50 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 GRANTS (CDBG) FY2019
ACTION
REQUESTED:
Discuss and provide direction on:
DRAFT Springfield 2018-19 CDBG One Year Action Plan
Proposed amendment to the Springfield CDBG Prior Year Action Plan
Next steps for an affordable housing project(s)
ISSUE STATEMENT: Each spring, City Council must approve 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. Council will have the opportunity to formally approve the 2018/19 CDBG One Year Action Plan, and the proposed substantial amendment to
the prior year CDBG action plan, during the May 21st Regular Session.
ATTACHMENTS: ATT1: Council Briefing Memorandum ATT2: DRAFT CDBG FY2018/19 OYAP
ATT3: DRAFT CDBG substantial amendment to prior year action plan
DISCUSSION/ FINANCIAL
IMPACT:
The Community Development Advisory Committee (CDAC) has made a
recommendation to Council for the DRAFT Springfield 2018/19 CDBG One Year
Action Plan, following a public hearing on April 5, 2018 and the review of public comment. The recommendation prioritizes the strategy to increase the supply of
affordable housing, while maintaining the City’s current programs to assist low-
income residents with home repairs and down payment assistance.
The CDAC held a public hearing and reviewed public comment on April 5, 2018 on
the proposed substantial amendment to a prior year action plan. While the draft proposal would have reallocated funds from the now-completed neighborhood
lighting improvements project, a recent invoice from SUB has prompted the committee to reconsider the substantial amendment and recommend a smaller amount to be reallocated in order to pay the invoice.
M E M O R A N D U M City of Springfield
Date: 4/23/2018
To: Gino Grimaldi COUNCIL
From: Tom Boyatt
Sandy Belson
Erin Fifield
BRIEFING
Subject: COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) FY2019 MEMORANDUM
ISSUE: Each spring, City Council must approve 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. Council will have the opportunity to formally approve the 2018/19 CDBG One Year Action Plan, and the proposed substantial amendment to the prior year CDBG action plan, during the May 21st Regular
Session.
COUNCIL GOALS/
MANDATE:
Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental Quality
BACKGROUND: This memo outlines the following topics for discussion:
FY2018-19 CDBG One Year Action Plan – The CDAC has recommended an allocation to
City Council, prioritizing the strategy to increase the supply of affordable housing.
However, HUD has yet to announce final new entitlement allocations. Council is set to approve the One Year Action Plan during the May 21st Council Regular Session meeting.
Substantial amendment to prior year action plan – The CDAC has recommended asubstantial amendment to a prior year action plan.
Next steps on efforts to use CDBG funds to increase the supply of affordable housing.
FY2018-19 CDBG One Year Action Plan
Each spring, the City Council approves funding allocations for use of CDBG funds for the next fiscal year. As discussed during the January 22nd, 2018 work session on CDBG funding, and in line
with the development of the affordable housing strategy, Council has stated their interest in
prioritizing CDBG funds toward increasing the supply of affordable housing.
Subsequent to that work session, City staff published for comment a draft One Year Action Plan for
FY2019 CDBG funds reflecting this priority, and held a public hearing at the April 5, 2018 Community Development Advisory Committee (CDAC) meeting. Between the written comments
and the public hearing, four members of the public provided testimony on the CDBG proposed
action plan, all in support of targeting the use of CDBG funds for affordable housing:
Jacob Fox, Executive Director of Homes for Good (formerly HACSA), identified the needfor the preservation of affordable housing in Springfield in future action plans;
Tom Mulhern, Executive Director of Catholic Community Services, supports thedevelopment of ADUs as transitional housing for homeless families with children within the
G Street OASIS program;
June Fothergill, Pastor at Ebbert Methodist Church, is working on a project to convert a
single family house into multiple units to provide safe housing for women who live on the
streets, and would like the City to include a Request for Proposals for community membersto apply for funding; and
Attachment 1, Page 1 of 6
Kris McAlister, resident, is supportive of a process to encourage pilot projects to address theneed for affordable housing, and expressed concern there was no CDBG funds allocated
toward economic development and workforce training.
HUD allocation unknown
The final CDBG allocation number is currently unknown – Congress has passed an omnibus bill for the current federal fiscal year (the City’s FY2019), increasing the overall budget for CDBG;
however, the US. Department of Housing and Urban Development (HUD) is still calculating each
jurisdiction’s allocation. We anticipate receiving our final allocation numbers the beginning of May, similar to last year’s allocation, with funds available after July 1, 2018. We will bring a final
allocation to City Council on May 21st, 2018 for approval during Regular Session.
CDAC recommendation – prioritize affordable housing
On April 5, 2018, the CDAC held a discussion on the One Year Action Plan draft and the public
comments received. The discussion identified the need for affordable housing in our community, and acknowledged efforts in the community working towards increasing affordable housing units.
The CDAC also discussed the difficulties of providing training and education to those without housing, and acknowledged the work that other community partners are initiating regarding economic development strategies.
The CDAC reiterated support for the City’s home repair and down payment assistance programs,
and identified that these programs could continue next year without a large allocation of this year’s
funds, given that they are already well funded from previous unspent allocations:
The table below shows the CDAC’s recommendation for funding priorities by category. The table
includes anticipated carry over funds, the original draft as proposed, and the CDAC’s
recommendation. The Estimated TOTAL available column is the sum of anticipated carryover funds and the CDAC recommendation for use of current funds:
UPDATED THROUGH FEBRUARY 2018
EHR Cash Flow
FY14 FY15 FY16 FY17 FY18
Beginning Cash -$ 52,452$ 92,087$ 144,824$ 146,624$
Annual Allocation 167,168$ 155,749$ 141,604$ 110,000$ 55,000$
TOTAL available 167,168$ 208,201$ 233,691$ 254,824$ 201,624$
Expenses*114,716$ 116,115$ 88,867$ 108,199$ 82,682$
Remainder*52,452$ 92,087$ 144,824$ 146,624$ 118,942$
# units rehabbed*26 49 52 60 60
*estimated for FY18
UPDATED THROUGH FEBRUARY 2018
SHOP Cash Flow
FY16 FY17 FY18
Beginning Cash -$ 91,337$ 123,832$
Annual Allocation 100,000$ 100,000$ 50,000$
TOTAL AVAILABLE 100,000$ 191,337$ 173,832$
Expenses*8,663$ 67,505$ 60,331$
Remainder*91,337$ 123,832$ 113,502$
# households assisted*1 9 10
Attachment 1, Page 2 of 6
CDBG REVENUES (estimated) Amount
FY 2018-2019 Entitlement Funds $ 486,000
Program Income $ 133,500
TOTAL $ 619,500
CDGB EXPENDITURES (estimated)
Anticipated
carryover funds
FY19 DRAFT
FY19
CDAC rec.
Estimated
TOTAL available
Consolidated Plan Strategy Activity (e.g.) Amount Amount Amount Amount
1.Increase the supply
of affordablehousing
Acquisition; improvements $342,450 $360,000 $408,500 $750,950
2. Rehabilitate existinghousing stock
affordable to low-income persons
Emergency Home Repair
Program (EHR) $118,942 $35,000 $15,000 $133,942
3. Provide downpayment assistance
for home ownership
Springfield Homeownership
Program (SHOP)
$113,502 $20,000 $0 $113,502
4. Remove barriers to
affordable andsupportive housing
Support Fair
Housing programs
$0 $0 $0 $0
5. Support human
services to address
the needs ofhomeless persons
and special needs
populations
Human Services
Commission (HSC) contribution $0 $85,000 $87,000
**
$87,000
6. Promote economicdevelopment and
employment opps
Economic devt; workforce
training $0 $0 $0 $0
7.Make strategicimprovements to
improve low incomeneighborhoods
Address
slum/blight downtown; public
improvements
$0 $0 $0 $0
Grant Administration $0 $109,000 $109,000 $109,000
TOTAL $574,894 $609,000 $619,500 $1,194,394
**This full amount will be allocated to the Human Services Commission. As with past practice, the portion from Entitlement Funds will be distributed to non-profits through an
RFP process (~$72,000), and the portion from Program Income will be reserved for the G Street OASIS program (~$15,000).
Attachment 1, Page 3 of 6
Question: Do you support the CDAC’s recommendation for funding the strategies shown in the amounts shown? If not, what changes would you like to make?
Once the exact dollar amount for the CDBG FY2018-19 Entitlement Funds is known, this table will be updated to reflect any increase or decrease in the final grant amount. Dollar amounts will be
adjusted with the same ratio as Council’s recommendation for funding.
Substantial Amendments to Prior Year Action Plans
At times, the City allocates funds to agencies for projects which ultimately are not able to be completed at that time, and/or do not fully use the funds requested. HUD requires any re-allocation
of these funds to a new activity undergo the same public comment and public hearing process as when the funds were originally allocated.
As part of the FY2017 One Year Action Plan, City Council allocated funds to make
strategic improvements in a low-income neighborhood. As
part of a larger neighborhood
project, one activity replaced approximately 200 yellow, low
pressure sodium street lights
with white LED lights in the neighborhood around
Willamalane Park. The lights
were installed in Spring 2017.
The draft substantial amendment would have reallocated funds from the now-completed neighborhood lighting improvements project. However, since installation, SUB has been troubleshooting issues with the new lights under warranty. Those issues were recently resolved, and
a final invoice came in to the City in March 2018 in the amount of $9,768.95, after the proposed substantial amendment was published.
Between the written comments and the public hearing, one citizen and one staff member provided testimony on the CDBG proposed substantial amendments, both in favor of adjusting the
amendment to allow for the use of CDBG funds to pay for this recent invoice:
Kris McAlister, resident, acknowledged while he supports more funding for increasing the
supply of affordable housing, the City should pay the invoice with CDBG funds as was
originally allocated; and
Brian Barnett, City of Springfield Development and Public Works project manager for this
activity, brought the recent invoice to our attention, and requested CDBG funds be used to pay for it, if available.
The CDAC discussed the issue, and determined there are sufficient funds remaining in the original CDBG allocation for this project that could be used to pay the invoice. Staff offered that the
alternative to using CDBG funds to pay the invoice would be to use Development and Public Works
operating budget. The CDAC ultimately recommended reallocating only enough funds from this activity that would allow the recent invoice to be paid with CDBG funds:
Attachment 1, Page 4 of 6
Prior
Year
Action
Plan
Prior Year
Allocated
Activity
Amount
Funded
Amount
currently
expended
Proposed
Amendment
CDAC
recommendation
FY2016/
2017
Make strategic
improvements
to improve low
income
neighborhoods
$ 271,163.07 $ 255,546.79 Reallocate $11,500
toward the
strategy to
Increase the Supply
of Affordable
Housing.
Pay the invoice and
reallocate $1,730.16
toward the strategy
to Increase the
Supply of Affordable
Housing
Question: Do you support the CDAC’s recommendation for the substantial amendment? If
not, what changes would you like to make?
Next steps
During the June 12th, 2017 Council work session on using CDBG funds for affordable housing, City
Council expressed interest in two types of potential housing developments:
1) Develop a cluster of houses for rental or ownership, and
2) Develop a yet-to-be-determined new and creative model for affordable housing units.
Cluster of houses
Following Council direction on April 2, 2018, staff are developing an RFP for affordable housing on
the low-density residential zoned property on S. 57th St. Staff anticipate the project to result in at least 8 new units of affordable housing for homeownership, possibly accommodating accessibility
needs and larger families. Next steps for that project:
Conduct the Environmental Assessment for the property (per HUD requirements)
Release an RFP, including any conditions found from the Environmental Assessment
Evaluate applications and tentatively award CDBG funds for the project
Determine how to disburse funds coming back to the City for the sale of the property
Declare the property as surplus in a Regular Session, and execute a contract for the sale
New and creative model for affordable housing units
During the April 5, 2018 CDAC meeting, committee members were encouraged by the ideas that
came in through public comment to make some of the CDBG funding available for innovative pilot projects that address Strategy 1 to increase the supply of affordable housing. The CDAC
recommends putting a portion (10%),or approximately $40,850 of the FY2019 allocation for this
strategy, toward a Request for Proposals (RFP) for the community to access funds for innovative pilot ideas. The CDAC further recommends that the City use the remaining funds for the strategy to
purchase land that is not zoned low-density residential to be used for future development.
Staff analysis – The concept of making funds available to community groups for an
innovative pilot project(s) could help to increase the supply of affordable housing. However, given the HUD 2015 monitoring findings, staff is cautious about how an RFP for multiple projects would be executed given the federal requirements and staff’s capacity.
Question: Do you support staff working to develop an RFP for an innovative pilot project(s)
to help increase the supply of affordable housing?
Attachment 1, Page 5 of 6
*If yes, staff will come back at a future work session to discuss options.
Given the responses to the Request for Information that was issued in Fall 2017, where
affordable housing developers identified a need for higher density land, staff is developing a process on how to pursue the acquisition of land, and will propose a strategy for Council’s
consideration.
RECOMMENDED ACTION: Discuss and provide direction on the DRAFT Springfield FY2018/19 CDBG One Year Action Plan, proposed amendment to prior year CDBG Action Plan, and Next steps.
Attachment 1, Page 6 of 6
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
1
City of Springfield – CDBG Program
FY 2018/19 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, 2018 and ending June 30, 2019
(Fiscal Year 2018/19). It is one part of the Eugene-Springfield 2018/19 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.
Attachment 2, Page 1 of 7
Eugene-Springfield FY 2018/19 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) 2018/19. 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 5, 2018, Springfield released its DRAFT CDBG One-Year Action Plan on its website
and at City Hall. A 30-day public comment period was open thru April 5, 2018. Additionally, a
public hearing was held by the CDAC on April 5, 2018. Following the public hearing, the
CDAC discussed the draft Action Plan, voted to recommend to City Council a summary of
Springfield CDBG funded sources and uses. Springfield’s City Council considered the
recommendation of the CDAC and public comments received before approving the One-
Year Action Plan. The current proposed allocation is included in Attachment A.
Affordable Housing Strategy
The City is has developed 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 2018/19 would
benefit low- and moderate-income persons.
Attachment 2, Page 2 of 7
Eugene-Springfield FY 2018/19 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 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
2018/19 does not include an allocation toward the elimination of Slum and Blight.
Attachment 2, Page 3 of 7
Eugene-Springfield FY 2018/19 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 estimates its FY 2018/19 CDBG allocation to be $480,000, plus an additional
$133,500 in program income. (Springfield's FY 2017/18 CDBG allocation was $486,236.) At this
time, HUD has not yet released the CDBG allocation for FY 2018/19. FY2019 CDBG One Year
Action Plan DRAFT – Attachment A shows the estimated sources of funding, and proposed
uses, for FY2019.
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
2018/2019 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 2018/19 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 – 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 $408,500 of estimated new entitlement funds toward supporting new housing
development. Additional funds allocated through the FY 2018/19 HOME Allocation will
help to address this strategy. (see FY 2018/19 HOME Allocation)
CHDO Operating Support – (see FY 2018/19 HOME Allocation)
Attachment 2, Page 4 of 7
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
5
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. This program is funded from the new CDBG entitlement grant, but has
additional funds carried over from previous allocation years. Springfield proposes to
allocate an additional $15,000 in new CDBG funds for this purpose to meet additional
demand for services.
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. This program also
has sufficient funds carried over from previous allocation years. The City does not
propose allocating additional CDBG funds this year to this program, anticipating that
prior year funds would meet current, and even additional, demand for services.
Remove Barriers to Affordable and Supportive Housing
There are currently no funds allocated to this strategy. However, Springfield is working
with two Fair Housing Interns from the Univ ersity of Oregon to gather information and
develop an outreach plan in the effort to eliminate discrimination and promote equal
access in housing choice. Springfield also continues to seek additional 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. Agencies to be funded will be
determined through a competitive Request for Proposals (RFP) administered by the
Attachment 2, Page 5 of 7
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
6
HSC. Springfield proposes to allocate 15% of New Entitlement funds and program
income, estimated to be $87,000, to the HSC.
Promote Economic Development
There are currently no FY 2018/19 funds allocated to this strategy.
Make Strategic Investments to Improve Neighborhoods
There are currently no FY 2018/19 funds allocated to this strategy.
Attachment 2, Page 6 of 7
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
7
[INSERT CDBG One Year Action Plan budget, following
Council ’s direction]
Attachment 2, Page 7 of 7
2016-2017 OYAP
DRAFT
City of Springfield
Proposed Substantial Amendments to Prior Year One Year Action Plans for
Community Development Block Grant (CDBG) Funds
The City of Springfield is proposing a substantial amendment to prior year Action Plans to reallocate
federal Community Development Block Grant (CDBG) funds received as follows:
Prior
Year
Action
Plan
Prior Year
Allocated
Activity
Amount
Funded
Amount
currently
expended
Proposed
Amendment
CDAC
recommendation
FY
2016/17 Make strategic
improvements
to improve
low income
neighborhoods
$ 271,163.07 $ 255,546.79 Reallocate
$11,500 toward
the strategy to
Increase the
Supply of
Affordable
Housing.
Pay the SUB invoice
and reallocate
$1,730.16 toward
the strategy to
Increase the Supply
of Affordable
Housing
Attachment 3, Page 1 of 1