HomeMy WebLinkAboutItem 13 Motion to Adopt Substantial Amendments to Prior Year CDBG One Year Action Plan AGENDA ITEM SUMMARY Meeting Date: 5/21/2018
Meeting Type: Regular Meeting
Staff Contact/Dept.: Erin Fifield/DPW Staff Phone No: 726-2302
Estimated Time: Consent
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: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FISCAL YEAR
2018-2019 ONE YEAR ACTION PLAN AND SUBSTANTIAL AMENDMENTS
ACTION REQUESTED: By motion adopt the Springfield Community Development Block Grant section of the FY 2018-19 Eugene-Springfield One Year Action Plan.
By motion adopt the substantial amendment to a prior year CDBG One Year Action Plan.
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.
Annually, 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 FY2018/19 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: CDBG One Year Action Plan
ATT2: CDBG substantial amendment
DISCUSSION/ FINANCIAL
IMPACT:
City Council discussed both the FY2018/19 CDBG One Year Action Plan and the
substantial amendments during the April 23, 2018 work session. At the time, final allocations from HUD were unknown for new CDBG entitlement funds, and Council gave direction on how to adjust the estimated allocation budget once actual
funding amounts are known. The City has since received final allocation amounts from HUD; our new
entitlement amount was greater than our estimated amount, and the One Year Action Plan for FY2018-19 reflects that updated final allocation.
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.
Both attachments are in line with Council direction provided during work session
on April 23, 2018.
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
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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 1, Page 1 of 10
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
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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 allocation is included in Attachment A.
Affordable Housing Strategy
The City 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 the funding allocation supports 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 1, Page 2 of 10
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
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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 prevention or elimination of slum and
blight.
*The words “slum” and “blight” are terms formally used by HUD as part of the CDBG program’s national
objective, the “Prevention/Elimination of Slums or Blight.” The words were used prior to the creation of
the CDBG program in 1974 as part of the federal Urban Renewal program.
Attachment 1, Page 3 of 10
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
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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 will receive $523,929 as its FY 2018/19 CDBG allocation, and estimates having an
additional $137,857 in program income available for use in FY2019. Attachment A shows
sources of funding, and allocation, 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 the 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
HOME Allocation of the Eugene-Springfield 2018/19 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 is allocating
an estimated $434,255 of new entitlement funds and program income toward
supporting new housing development. Additional funds allocated through the FY
2018/19 HOME Allocation will help to address this strategy.
CHDO Operating Support – (see FY 2018/19 HOME Allocation)
Attachment 1, Page 4 of 10
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
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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 is allocating an
additional $16,170 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 is not
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 no funds allocated to this strategy. However, Springfield is working with two
Fair Housing Interns from the University 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. Springfield is allocating 15% of
new entitlement funds to the HSC to fund agencies that were determined through a
competitive Request for Proposals (RFP) administered by the HSC. An additional 15% of
Attachment 1, Page 5 of 10
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield CDBG program
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eligible program income is allocated to the HSC to fund the G-Street Oasis. Altogether,
a total of $94,202 is estimated toward non-profit services.
Promote Economic Development
There are no FY 2018/19 funds allocated to this strategy.
Make Strategic Investments to Improve Neighborhoods
There are no FY 2018/19 funds allocated to this strategy.
Attachment 1, Page 6 of 10
ATTACHMENT A
Eugene-Springfield FY 2018/19 One Year Action Plan City of Springfield
CDBG program
CDBG REVENUES Amount
FY 2018-2019 Entitlement Funds $ 523,929
Program Income $ 137,857
TOTAL $ 661,786
CDGB EXPENDITURES
Consolidated Plan Strategy Activity Amount
1. Increase the supply of affordable housing Acquisition, improvements, etc. $434,255
2. Rehabilitate existing housing stock affordable to low-income persons Emergency Home Repair Program (EHR) $16,170
3. Provide down payment assistance for home ownership Springfield Homeownership Program (SHOP) $0
4. Remove barriers to affordable and
supportive housing
Support programs that assure
housing opportunities are provided
without discrimination $0
5. Support a human services delivery system to address the needs of homeless persons and special needs
populations
Human Services Commission (HSC) contribution
$94,202
6. Promote economic development
and employment opportunities
Economic development; workforce
training $0
7. Make strategic improvements to improve low income
neighborhoods
Public improvements in sidewalks/
streets;
Downtown set-aside for improvements
$0
Grant Administration $117,159
TOTAL $661,786
Attachment 1, Page 7 of 10
EUGENE – SPRINGFIELD CONSOLIDATED PLAN 2015 Priority Needs - Table Priority Need Explanation Renters - Low and very low income people need increased access to quality affordable rental housing • A significant majority of low-income renters spend more than 30% of their income on housing costs (Eugene – 76%, Springfield – 74%) • A significant majority of low-income renters experience over-crowding, substandard housing, or a housing cost burden (Eugene – 78%, Springfield – 76%) • A large percentage of low-income renters spend more than 50% of their income on housing costs (Eugene – 51%, Springfield – 34%) Home Owners - Low and very low income people need increased access to affordable home ownership opportunities and support to remain homeowners • A significant majority of low-income owners experience over-crowding, substandard housing, or a housing cost burden (Eugene – 76%, Springfield – 57%) • A significant majority of low-income owners spend more than 30% of their income on housing costs (Eugene – 64%, Springfield – 56%) • A large percentage of low-income owners spend more than 50% of their income on housing costs (Eugene – 40%, Springfield – 31%) Homeless - People need access to housing and supportive services to prevent them from becoming homeless and to leave homelessness • A total of 11,668 homeless individuals were served in FY 2014 by agencies funded by Lane County. • The three public school districts in Eugene and Springfield report 1,616 homeless youth during 2014, and this definition includes students who are staying with friends or family. • The definition of homeless for purposes of this Plan includes people who are “doubled-up”. Non-Homeless Special Needs Populations - People with special needs including seniors, ex-offenders, people with HIV/AIDS, victims of domestic violence, people with drug and alcohol addictions, people who are evicted or foreclosed, people with physical and mental disabilities, veterans, youth and college students, and youth aging out of foster care. • Special needs populations need additional support as it relates to affordable housing, human services, and employment opportunities. Employment Opportunities - People who have low incomes, are unemployed or underemployed need a broader range of employment opportunities, including self-employment • Between 2007 and 2010, Lane County lost nearly 18,000 jobs. • The loss of jobs combined with the subsequent recession, have widened the gap between employed wages and housing costs. Low-Income Areas & Areas of Slums and Blight – Geographic areas defined as areas of slums and blight or as low-income areas need additional support for rehabilitation and public facility improvements • There are several areas in this community that are or could meet the HUD requirement for an areas of slums and blight which would allow different uses of CDBG funds. These areas could benefit from increased investments in the area. • There are several areas of this community that are characterized by 51% or more low- to moderate-income residents, which can benefit from increased investments in this area. Eugene-Springfield FY 2016/17 One Year Action Plan City of Springfield CDBG program 1 Attachment 1, Page 8 of 10
EUGENE – SPRINGFIELD CONSOLIDATED PLAN 2015 Strategies to Address Priority Needs – Table 2015 Eugene/Springfield Consolidated Plan Strategy Priority Needs Addressed Possible Examples Measurements Eugene/ Springfield HOME Consortium Eugene CDBG Springfield CDBG Increase the supply of affordable housing (Consortium HOME and Community Development Block Grant) Renters, Home Owners, Homeless, Special Needs Land Acquisition. Development of new rental housing. Operating Support for Community Housing Development Organizations Number of rental units constructed, reconstructed, acquired or preserved 600 50 Number of CHDO’s Assisted 4 Housing for homeless added 20 Number of sites acquired 2 1 Homeowner housing added 10 5 Rehabilitate existing housing stock affordable to low-income persons (Community Development Block Grant) Renters, Homeless, Special Needs, Low-Income Areas, Home Owners Continue and expand publicly supported rehabilitation and accessibility improvements. Number of rental units rehabilitated 350 5 Number of home owner units rehabilitated 150 200 Provide down payment assistance for home ownership (Community Development Block Grant) Home Owners Assist low-income residents with the first time purchase of a home. Households assisted with direct assistance to home buyers 10 50 Remove barriers to affordable and supportive housing (Community Development Block Grant) Renters, Home Owners, Homeless, Low Income Area Non Homeless Special Needs Support programs that assure housing opportunities are provided without discrimination. Support Housing Policy Board. Update Fair Housing Plan. Maintain Housing Policy board Yes Yes Number of fair housing events 20 5 Maintain fair housing services Yes Yes Update Fair Housing Plan Yes Yes Attachment 1, Page 9 of 10
EUGENE – SPRINGFIELD CONSOLIDATED PLAN 2015 Strategy Priority Needs Addressed Possible Examples Measurements Eugene/ Springfield HOME Consortium Eugene CDBG Springfield CDBG Support a human services delivery system to address the needs of homeless persons and special needs populations (Community Development Block Grant) Homeless, Special Needs Fund capital improvements to facilities owned by non-profits. Fund non-profit services through the Human Services Commission. Persons assisted with public facility activities 25,000 5,000 Persons assisted with public service activities 110,000 65,000 Number of public facilities improved 15 4 Number of transitional or emergency beds added 20 5 Promote economic development and employment opportunities through the creation of jobs and business development (Community Development Block Grant) Employment Opportunities Provide below market financing to local businesses creating or retaining jobs. Provide micro-enterprise training and development opportunities. Jobs created or retained 200 5 Businesses assisted 50 1 Micro business trainees 300 55 Make strategic investments to improve low income neighborhoods and other areas of slums and blight (Community Development Block Grant) Renters, Owners, Homeless, Special Needs, Low Income Areas and Slums & Blight, Employment Opportunities Provide financing for activities which eliminate slums and blight, including acquisition, clearance, rehab and historic preservation and economic development activities. Businesses assisted with façade treatment or building rehab 2 Number of projects completed 2 2 Persons assisted with public facility activity 5,000 6,000 Attachment 1, Page 10 of 10
2016-2017 OYAP
DRAFT
City of Springfield
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
FY 2016/17 Make strategic
improvements to
improve low income
neighborhoods
$ 271,163.07 $ 269,432.91 Reallocate $1,730.16
toward the strategy
to Increase the
Supply of Affordable
Housing.
Attachment 2, Page 1 of 1