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HomeMy WebLinkAboutItem 12 FY20 CDBG One Year Action Plan AGENDA ITEM SUMMARY Meeting Date: 5/6/2019 Meeting Type: Regular Meeting Staff Contact/Dept.: Erin Fifield / DPW Staff Phone No: 541-726-2302 Estimated Time: 10 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: Mandate ITEM TITLE: FY20 COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) ONE YEAR ACTION PLAN ACTION REQUESTED: Approve the FY20 CDBG One Year Action Plan. Approve the distribution of funds for human services as outlined in Option A/Option B. 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. ATTACHMENTS: ATT1: Council Briefing Memorandum ATT2: FY20 CDBG One Year Action Plan DISCUSSION/ FINANCIAL IMPACT: The Community Development Advisory Committee (CDAC) has made a recommendation to Council for the Springfield FY20 CDBG One Year Action Plan, following a public hearing on April 10, 2019 and the review of public comment. The recommendation is in line with the draft plan Council approved in February, which prioritizes the City’s current program to assist low-income residents with home repairs, provide funds to local service providers, and fund public improvements, such as the Safe Routes to Schools sidewalk improvements. The CDAC did, however, recommend distributing funds within the strategy to “Support human services to address the needs of homeless persons and special needs population.” Rather than distribute the maximum allowed of 15% to the Human Services Commission (HSC), the CDAC recommends distributing 10% to the HSC and the remaining 5%, or $27,708, to the G Street OASIS program in addition to the proposed $9,280 in prior year program income. Council also allocates $25,000 of General Fund to the G St. OASIS program, which would continue and is not proposed to be replaced by the additional $27,708. March 4, 2019 work session Attachment 1, Page 1 of 5 DRAFT One Year Action Plan CDAC recommendation o o o o o Attachment 1, Page 2 of 5 o HUD allocation Attachment 1, Page 3 of 5 Council Decisions o o Attachment 1, Page 4 of 5 Attachment 1, Page 5 of 5 Eugene-Springfield FY 2019/20 One Year Action Plan City of Springfield CDBG program 1 City of Springfield – CDBG Program FY 2019/20 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, 2019 and ending June 30, 2020 (Fiscal Year 2019/20). It is one part of the Eugene-Springfield 2019/20 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 2, Page 1 of 10 Eugene-Springfield FY 2019/20 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) 2019/20. 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 8, 2019, 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 10, 2019. Additionally, a public hearing was held by the CDAC on April 10, 2019. No public comments were received, and no one spoke at the public hearing. At the meeting, the CDAC discussed the draft Action Plan, and made a recommendation to City Council on the uses of Springfield CDBG funds. Springfield’s City Council considered the recommendation of the CDAC at the May 6, 2019 Regular Session meeting before approving the One-Year Action Plan. The approved allocation is included as 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 implementing 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. In FY17/18 and FY18/19 CDBG One Year Action Plans, the City allocated funds toward the strategy to “Increase the supply of affordable housing”. In FY18/19, the City issued a Request for Concepts to award funds that had been previously allocated. That award process is currently underway. 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 2019/20 would benefit low- and moderate-income persons. Attachment 2, Page 2 of 10 Eugene-Springfield FY 2019/20 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 2019/20 does not include an allocation toward the elimination of Slum and Blight. Attachment 2, Page 3 of 10 Eugene-Springfield FY 2019/20 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 FY2019/20 CDBG allocation is $554,179, $30,250 more than last year’s allocation. 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 allocations of Springfield CDBG funds for FY2019/20 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 2019/20 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 previous allocations have aimed to add a net increase of units to the housing supply. The City continues to seek projects to allocate prior year CDBG funds to “Increase the supply of affordable housing.” Additional funds allocated through the FY19/20 HOME Allocation will help to address this strategy in Springfield. (see FY19/20 HOME Allocation) CHDO Operating Support – (see FY 2018/19 HOME Allocation) Rehabilitate Existing Housing Stock Springfield Home Repair - The City of Springfield will continue to provide assistance to qualified low-income homeowners through its Home Repair Program. This program is funded from the new CDBG entitlement grant, and is not projected to have funds Attachment 2, Page 4 of 10 Eugene-Springfield FY 2019/20 One Year Action Plan City of Springfield CDBG program 5 carried from prior year allocations. Springfield proposes to allocate $116,377 in new CDBG funds for this program. Provide Down Payment Assistance for Home Ownership Springfield Home Ownership Program - The City of Springfield continues to administer the Springfield Homeownership Program (SHOP). The SHOP provides down-payment assistance for low-and very low-income households. This program has additional 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 currently no funds allocated to this strategy. However, Springfield has worked with 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 is now focused on implementing pieces of the outreach plan, such as promoting information on the City website, and to our community partners. Springfield continues to seek opportunities to affirmatively further fair housing and inform others about fair housing. 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 are determined through a competitive Request for Proposals (RFP) administered by the HSC. When additional program income is available, Catholic Community Service’s G Street OASIS program has also been funded. Springfield proposes to allocate 15% of New Entitlement funds, plus eligible FY19 program income, toward this strategy. Altogether, a total of $92,406 is proposed to be allocated toward non-profit services. Promote Economic Development There are currently no FY 2018/19 funds allocated to this strategy. Attachment 2, Page 5 of 10 Eugene-Springfield FY 2019/20 One Year Action Plan City of Springfield CDBG program 6 Make Strategic Investments to Improve Neighborhoods Working with the Department of Development and Public Works and Springfield Safe Routes to Schools program, city staff identified a number of infrastructure safety improvements to address unsafe school crossings at seven locations in Springfield. The City proposes to allocate $243,839 toward this strategy to fund improvements (including Rapid Flashing Beacons, raised crosswalks, curb extensions, and signage) at two to three sites in low-income neighborhoods. Attachment 2, Page 6 of 10 Attachment A Eugene-Springfield FY 2019/20 One Year Action Plan City of Springfield CDBG program City of Springfield FY 2019/20 CDBG Funding Allocation Proposal Sources of Funding Fiscal Year 2019/20 CDBG Entitlement Grant $ 554,179 Program Income (15% of FY18/19 program income) $ 9,280 Total sources $ 563,459 Uses of Funding Increase the supply of affordable housing Acquisition, site improvements, clearance, etc. $ 0 Rehabilitate Existing Housing Stock Home Repair Program for Low-income Homeowners $ 116,377 Provide Down Payment Assistance for Home Ownership Down payment assistance for Low-Income Homebuyers $ 0 Support a Human Services Delivery System (15%) Non-profit services through the Human Services $ 92,406 Commission (HSC) Make strategic improvements to low-income neighborhoods Public improvements to streets/sidewalks $ 243,839 Administration and Planning (20%) $ 110,836 Total uses $ 563,459 Attachment 2, 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 2, 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 2, 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 2, Page 10 of 10