Loading...
HomeMy WebLinkAboutItem 08 CDBG One Year Action PlanAGENDA ITEM SUMMARY Meeting Date: 5/3/2021 Meeting Type: Regular Meeting Staff Contact/Dept.: Erin Fifield / DPW Staff Phone No: 541-726-2302 Estimated Time: 5 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: FY2022 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ONE YEAR ACTION PLAN ACTION REQUESTED: 1. Approve the FY2022 CDBG One Year Action Plan as shown in Attachment 1. 2. Approve the award of FY2022 CDBG funds to those RFP applications listed in Attachment 2. ISSUE STATEMENT: Each spring, City Council must approve funding allocations for the use of federal Community Development Block Grant (CDBG) funds for the next fiscal year in a document called the One Year Action Plan. City Council discussed the FY2022 CDBG One Year Action Plan during the April 19, 2021 work session. ATTACHMENTS: Attachment 1: FY2022 CDBG ONE YEAR ACTION PLAN Attachment 2: FY2022 CDBG RFP Awards DISCUSSION/ FINANCIAL IMPACT: The CDBG One Year Action Plan needs to be submitted to the U.S. Department of Housing and Urban Development (HUD) by May 15, 2021, in order for funds to be made available after July 1, 2021. The Plan incorporates direction from City Council at the April 19, 2021 work session. The Plan was made available for a 30-day public comment period and a public hearing was held by the Springfield Community Development Advisory Committee (CDAC) on April 7, 2021. As part of the planning process for the Action Plan, the City issued a Request for Proposals (RFP) to non-profits, public agencies, and other eligible organizations seeking CDBG funds for community projects that would serve low-moderate income people. The CDAC reviewed those proposals during their March 31st public meeting, and their recommendations were discussed during the Council work session on April 19, 2021. The list of applications to be awarded CDBG funds through the RFP is included in Attachment 2. The FY2022 CDBG One Year Action Plan includes funding toward the projects awarded through the RFP, as well as funding for existing City programs and contributions: including the Home Repair Program, contribution to the Lane County Human Services Commission (HSC), and grant administration and planning. Following HUD approval of the Action Plan, staff will work with each of the RFP applicants approved for funding to ensure the project can be successful and meets HUD requirements, including conducting an environmental review. Staff will then proceed with executing a CDBG agreement that lays out expectations and requirements. Funding will be available after July 1, once an agreement is signed between HUD and the City of Springfield. Eugene-Springfield FY 2022 One Year Action Plan City of Springfield CDBG program 1 City of Springfield – CDBG Program Fiscal Year 2022 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, 2021 and ending June 30, 2022 (Fiscal Year 2022). It is one part of the Eugene-Springfield Fiscal year (FY) 2022 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. Springfield and Eugene adopted the most recent five-year Eugene-Springfield Consolidated Plan in 2020. 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 8 Eugene-Springfield FY 2022 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 FY 2022. 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. At the beginning of March, Springfield released its DRAFT CDBG One -Year Action Plan on its website. A 30-day public comment period was open thru April 7, 2021. A dditionally, a public hearing was held by the CDAC on March 17 and April 7, 2021. Following the public hearing on April 7, 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 held a work session on April 19, 2021 to consider the recommendation of the CDAC and the public comments received on the One Year Action Plan. The proposed 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 implementing a strategy that will make the most impact on addressing Springfield’s affordable housing needs, recognizing that the City needs increasing housing units at all levels of the housing continuum. In FY 2019, the City awarded HOME funds to Homes for Good for a new affordable housing development. Subsequently, in fall 2019, the City loaned CDBG funds to Home for Good to help acquire land for that same project. The development – Hayden Bridge Landing – will create 70 new permanent affordable housing units and is set for completion and occupancy in late spring 2021. In FY 2021, the City awarded CDBG funds to acquire land for a new affordable housing development with Cornerstone Community Housing. That project is still underway. Attachment 1, Page 2 of 8 Eugene-Springfield FY 2022 One Year Action Plan City of Springfield CDBG program 3 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 pr ograms and projects undergo periodic staff monitoring to ensure compliance with CDBG regulations. Most of the allocations in Springfield’s One Year Action Plan for FY 2022 would benefit low- and moderate- income persons. Activities for the Prevention or E limination 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-designate d a Springfield Downtown Redevelopment Area, in compliance with CDBG regulations. The Downtown Redevelopment Area is pictured below. Springfield’s One Year Action Plan for FY 2022 includes an allocation toward the elimination of Slum and Blight, specifically to address façade improvements in the downtown area. Attachment 1, Page 3 of 8 Eugene-Springfield FY 2022 One Year Action Plan City of Springfield CDBG program 4 Attachment 1, Page 4 of 8 Eugene-Springfield FY 2022 One Year Action Plan City of Springfield CDBG program 5 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 FY 2022 CDBG entitlement allocation is $563,650 (a slight increase from Springfield’s FY 2020 and FY 2021 CDBG allocations). Attachment A shows the estimated sources of funding, and proposed uses, for FY 2022 CDBG One Year Action Plan DRAFT. The draft Eugene-Springfield 2020 Consolidated Plan emphasizes goals and strategies to meet priorities needs of renters, homeowners, people experiencing homelessness, and non-homeless special needs populations. Additional needs include increased employment opportunities as well as low-income neighborhoods and areas of slum and blight. The priority strategies described below are intended to address one or more priority needs. The following narrative describes proposed allocations of Springfield CDBG funds for FY 2022 as it relates to each strategy identified in the Eugene-Springfield 2020 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 FY 2022 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 Eugene-Springfield 2020 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 work on acquiring land for a new housing developed funded in the FY2021 CDBG One Year Action Plan. Additional funds allocated through the FY 2022 HOME Allocation will help to address this strategy in Springfield. (see FY 2022 HOME Allocation) • CHDO Operating Support – (see FY 2022 HOME Allocation) Rehabilitate Existing Housing Stock • Springfield Home Repair - The City of Springfield plans to continue to provide assistance to qualified low -income homeowners through its Home Repair Program. This program is funded from the new CDBG entitlement grant. Springfield proposes to allocate an Attachment 1, Page 5 of 8 Eugene-Springfield FY 2022 One Year Action Plan City of Springfield CDBG program 6 additional $90,000 in new CDBG funds for this purpose, in addition to carryover funds from the current year . 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 is estimated to have additional funds carried over from previous allocation years. The City proposes not to allocate additional funds, anticipating that prior year funds we will be able to meet demand for services. • The City plans to award $63,000 toward the Square One Villages’ C Street Co-op project, a cooperative housing model and community land trust. The project would support six low-income households by subsidizing their membership share (i.e. down payment) in this new homeownership model. Remove Barriers to Affordable and Supportive Housing • There are currently no funds allocated to this strategy. In 2020, Springfield conducted an Analysis of Impediments to Fair Housing Choice. In previous years, Springfield has worked with interns from the University of Oregon on this strategy to promote equal access in housing choice. Springfield is focused on 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 Eugene-Springfield 2020 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. Springfield proposes to allocate 15% of new e ntitlement funds to the HSC, plus additional program income received in FY 2021. • Non-profit capital facility improvements – The City proposes to allocate $332,492 to fund improvements at Catholic Community Services in order to develop a permanent space for the OASIS program, which assists homeless families with children with a range of daytime services. Attachment 1, Page 6 of 8 Eugene-Springfield FY 2022 One Year Action Plan City of Springfield CDBG program 7 Promote Economic Development • There are currently no FY 2022 funds allocated to this strategy. Make Strategic Investments to Improve Neighborhoods • Address the causes of slum and blight – The City plans to allocate $22,130 toward this strategy to address the causes of slum and blight, primarily façade improvement, for the downtown building which houses Emerald Art Center. • Public improvements in low -income neighborhoods – In FY 2020, the City allocated funds toward this strategy through the Springfield Safe Routes to Schools program. That project identified a number of infrastructure safety improvements to address unsafe school crossings at three locations in Springfield. That project was completed in early 2021. Attachment 1, Page 7 of 8 CDBG REVENUES (estimated) TOTAL FUNDS FY 2021-2022 Entitlement Funds (EN) $ 563,650 Other Funds • Carryforward from previous years • Program Income in FY 21 and FY 22 $ 177,250 TOTAL $ 740,900 CDGB EXPENDITURES (estimated) Consolidated Plan Strategy Activity Amount (TOTAL) 1. Increase the supply of affordable housing Acquisition, improvements, etc - 2. Rehabilitate existing housing stock affordable to low-income persons Home Repair Program $ 90,000 3. Provide down payment assistance for home ownership Springfield Homeownership Program (SHOP) - Down payment assistance for Square One Villages’ C Street Co-op $ 63,000 4. Remove barriers to affordable and supportive housing Support programs that assure housing opportunities are provided without discrimination - 5. Support a human services delivery system to address the needs of homeless persons and special needs populations Human Services Commission (HSC) (15%) $ 100,548 Non-profit capital facility improvements at Catholic Community Services of Lane County $ 332,492 6. Promote employment opportunities Economic development - 7. Make improvements to low income neighborhoods and areas of slum and blight Public improvements in sidewalks, streets - Address causes of slum and blight at Emerald Art Center $ 22,130 Planning and Administration $ 132,730 TOTAL $ 740,900 Attachment 1, Page 8 of 8 FY 2022 Springfield Community Development Block Grant (CDBG) Request for Proposals awards: 1. Applicant / Organization Catholic Community Services of Lane County Project Name OASIS Addition at Springfield Community Service Center Summary Description of project Catholic Community Services of Lane County (CCSLC) is proposing a 1,600 square foot addition to their Community Service Center at 1025 G St. in order to permanently house their OASIS program, which assists homeless families with a range of daytime services. The OASIS program is currently located across the parking lot at First Baptist Church, which is not fully under the control of CCSLC staff and is not ADA accessible. CDBG $ award $ 322,492 (+ $10,000 in estimated staff costs) 2. Applicant / Organization Emerald Art Center (EAC) Project Name Exterior Painting and Repair Summary Description of project EAC proposes to repaint the exterior stucco of their building at 500 Main Street in Springfield, and to repair the windows and doors. CDBG $ award $ 17,500 (+ $4,360 in estimated staff costs) 3. Applicant / Organization Square One Villages Project Name C Street Co-op Summary Description of project Funding would assist 6 low-income households in purchasing a membership share (down payment) in the C Street Co-op, a cooperative housing model and community land trust. Under the financing model, in order to be affordable to households earning 60% of area median income, monthly housing costs would need to be $788, requiring a down payment of $20,000 per household. CDBG funds would subsidize that down payment, requiring a $10,000 down payment per household. Square One Villages’ involvement as the community land trust ensures the Co-op remains permanently affordable to low-income households. CDBG $ award $ 60,000 (+ $3,000 in estimated staff costs) Attachment 2, Page 1 of 1