HomeMy WebLinkAboutItem 01 FY23 CDBG Action PlanAGENDA ITEM SUMMARY
SPRINGFIELD
CITY COUNCIL
Meeting Date:
Meeting Type:
Staff Contact/Dept.:
Staff Phone No:
Estimated Time:
Council Goals:
1/24/2022
Work Session
Erin Fifield / DPW
541-726-2302
20 Minutes
Mandate
ITEM TITLE: FISCAL YEAR 2023 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) DRAFT ACTION PLAN
ACTION Provide direction on the proposed Fiscal Year 2023 CDBG Draft One Year Action
REQUESTED: Plan allocation.
ISSUE
Each year, the City receives federal Community Development Block Grant
STATEMENT:
(CDBG) funds from the US Department of Housing and Urban Development
(HUD). The City must allocate CDBG funds through a One Year Action Plan to
indicate how the City intends to address the strategies identified in the Eugene -
Springfield Consolidated Plan.
ATTACHMENTS:
Attachment 1: Council Briefing Memo
Attachment 2: DRAFT FY23 CDBG OYAP budget
Attachment 3: Letter from Cornerstone Community Housing
DISCUSSION/
It is estimated the City of Springfield will have $1,232,122 available to allocate in
FINANCIAL
CDBG funds for Fiscal Year 2023 (FY23). This amount is based on an estimated
IMPACT:
HUD entitlement grant for FY23 of $571,956, as well as estimated unspent funds
carried over from previous years, including $641,000 that was previously awarded
to Cornerstone Community Housing for acquiring 525 Mill St, but did not progress.
Staff propose keeping the $641,000 allocated toward affordable housing and
working through a public process to determine a more effective and efficient
manner to spend those funds. For the remaining funds, staff recommend following a
similar process to previous years for the FY23 CDBG OYAP allocation, including
allocating funding for the Home Repair Program, social services through the Lane
County Human Services Commission, and City grant administration costs. An
estimated $259,998 would be put into a Request for Proposals, allowing community
organizations to submit project proposals.
Next steps:
• January — March
o The FY23 CDBG Request for Proposals is open.
• March
o The DRAFT FY23 CDBG OYAP is published for public comment.
• April
o The Community Development Advisory Committee (CDAC) holds
a public hearing on the draft One Year Action Plan.
o The CDAC evaluates the RFP applications and makes a
recommendation to City Council for funding.
• May
o City Council approves a funding allocation for the FY23 CDBG
One Year Action Plan, including RFP awards.
o Staff submit the FY23 CDBG One Year Action Plan to HUD
• Late Summer
o FY23 CDBG funds become available.
MEMORANDUM
City of Springfield
Date:
1/24/2022
To:
Nancy Newton, City Manager COUNCIL
From:
Erin Fifield, Community Development BRIEFING
Analyst
Tom Boyatt, Community Development
Director
Subject:
FY23 CDBG One Year Action Plan MEMORANDUM
ISSUE: Each year, the City receives federal Community Development Block Grant (CDBG)
funds from the US Department of Housing and Urban Development (HUD). The City must
allocate CDBG funds through a One Year Action Plan to indicate how the City intends to address
the strategies identified in the Eugene -Springfield Consolidated Plan.
COUNCIL GOALS/
MANDATE:
Council Goals: Mandate
BACKGROUND
2020 Eugene -Springfield Consolidated Plan
The 2020 Eugene -Springfield Consolidated Plan is the 5 -year regional strategic plan for housing and
community development required by the US Department of Housing and Urban Development (HUD)
in order to receive Community Development Block Grant (CDBG) funds. The Consolidated Plan
guides the activities and programs that use the City's CDBG funds.
The 2020 Consolidated Plan was developed over many months in FY2020, approved by the
Springfield City Council on May 4, 2020, and went into effect July 1, 2020. The Plan relies on the
analysis of qualitative and quantitative data from the US Census, interviews and surveys with local
elected leaders, agencies and non-profit human service providers, and participation and comments
from the community to identify housing, homeless, and community development needs and trends. A
Consolidated Plan Advisory Committee (including a City Councilor and Council -appointed
Springfield representatives) reviewed the analysis and provided input on priority strategies, and made
recommendations to Council in Spring 2020. The Plan sets the goals and activities for the use of
federal CDBG and HOME funds.
One Year Action Plan
Each year, the City is entitled to receive an allocation of CDBG funds from HUD. In order to do so,
the City must develop a One -Year Action Plan describing how it plans to allocate funds to address
local community needs. The proposed uses of funding must align with allowed uses and with the local
community needs and strategies identified in the 2020 Eugene -Springfield Consolidated Plan.
Staff estimate Springfield will receive a HUD FY23 CDBG entitlement grant of $571,956 (the same
amount as FY22). There are additional carryover funds from previous years that can also be made
available in FY23, including $631,000 (plus $10,000 for staffing costs) that was previously awarded
to Cornerstone Community Housing for acquiring 525 Mill St, but did not progress.
Attachment 1, Page 1 of 3
MEMORANDUM
ONE YEAR ACTION PLAN PROCESS
Proposed timeline
• January — March
o The FY23 CDBG RFP is open.
Page 2
• March
o The DRAFT FY23 CDBG OYAP is published for public comment.
• April
o The Community Development Advisory Committee (CDAC) holds a public hearing
on the draft One Year Action Plan.
o The CDAC evaluates the RFP applications and makes a recommendation to City
Council for funding.
• May
o The City Council approves the funding allocation for the FY23 CDBG One Year
Action Plan, including RFP awards.
o Staff submit the FY23 CDBG One Year Action Plan to HUD for approval.
• Late Summer
o FY23 CDBG funds become available.
Overview of CDBG strategies and activities
Below is a summary of Springfield's anticipated efforts toward addressing the Eugene -Springfield
Consolidated Plan strategies, as well as the proposed allocation for the DRAFT FY23 One Year
Action Plan. ATT2 shows a cleaner version of the proposed allocation which will be published for
public comment and made available for the public hearing.
Consolidated Plan strategy
Proposed
Allocation
Funds made available through the RFP
$ 259,988
1. Increase the spNly of affordable housing
$ 641,000
Staff recommend keeping this FY21 allocation, and working through a public process
to determine an effective and efficient way to award these funds.
Cornerstone Community Housing was unable to acquire 525 Mill St. They and other
developers continue to look for land to acquire.
2. Rehab program for Low -Income Homeowners
$ 120,000
Springfield's Home Repair program provides urgent home repair services as a grant
to very low-income Springfield homeowners.
This program costs about $120,000 / year. There may be additional funds from FY22
to add to the total.
Attachment 1, Page 2 of 3
MEMORANDUM
Page 3
3. Down payment assistance for low-income residents
$ 0
With the recent housing crisis, staff have not been able to issue a loan through this
program for the past 2 years. Clients have had difficulty finding units that are both
affordable, and meet CDBG quality requirements.
The City may receive a request for funds toward this strategy through the RFP.
4. Remove barriers to affordable and supportive housing
$ 0
Springfield has updated fair housing information on the City's website. Staff refer
questions to the Fair Housing Council of Oregon and/or the Oregon Law Center.
As part of the 2020 Consolidated Plan, Springfield updated its Analysis of
Impediments to Fair Housing Choice.
5. Support a Human Services Delivery S,, ste
$ 96,743
Springfield can allocate up to 15% of its CDBG funds to support a human services
(HSC)
delivery system administered by Lane County through the Human Services
Commission (HSC). The HSC is an intergovernmental commission comprised of
Springfield, Eugene, and Lane County elected officials and budget committee
members to address basic needs of low-income residents. Springfield, Eugene, and
Lane County pool their state and federal grants and general funds contributions to
contract with local non-profit service providers.
Under this strategy, the City can also allocate funds toward capital improvements
undertaken by non-profit agencies. The City may receive a request for funds toward
this strategy through the RFP.
6. Promote economic development and employment opportunities through the
TBD
creation of jobs and business development
The Springfield Economic Development Agency (SEDA) currently funds a loan
program for downtown businesses.
The City may receive a request for a project toward this strategy through the RFP.
7. Make strategic investments to improve low-income neighborhoods
TBD
The City may receive a request for a project toward this strategy through the RFP.
Grant Administration and Planning
$ 114,391
The City of Springfield uses CDBG funds to pay for staff costs to administer the
CDBG program. The CDBG program limits reimbursement for program
administrative costs to 20% of the City's annual allocation.
CDBG funds have traditionally not been sufficient to cover costs of 2.2 FTE. Staff
costs not funded with CDBG funds are funded through the General Fund.
RECOMMENDED ACTION: Provide direction on the proposed Fiscal Year 2023 CDBG One Year
Action Plan allocation process.
Attachment 1, Page 3 of 3
FY2022-23 DRAFT CDBG One -Year Action Plan — To Be Published for Public Comment
CDBG REVENUES (estimated)
Entitlement
Other
TOTAL
Funds
Funds
FUNDS
FY 2022-2023 Entitlement Funds (EN)
$ 571,956
-
$ 571,956
Other Funds
• Unused funds from previous years
-
$ 19,166
$ 660,166
• Carryover of funds for Affordable Housing
$ 641,000
TOTAL
$ 571,956
$ 660,166
$ 1,232,122
CDGB EXPENDITURES (estimated)
Consolidated Plan
Activity
Amount (EN)
Amount
Amount
Strategy
(other)
(TOTAL)
To be determined
FY23 CDBG Request
$ 251,772
$ 8,216
$ 259,988
for Proposals (RFP)
1. Increase the supply
Acquisition,
-
$ 641,000
$ 641,000
of affordable housing
improvements, etc
2. Rehabilitate existing
housing stock
Home Repair
$ 120,000
-
$ 120,000
affordable to low-
Program
income persons
3. Provide down
Springfield
payment assistance
Homeownership
-
-
for home ownership
Program (SHOP)
Support programs
4. Remove barriers to
that assure housing
affordable and
opportunities are
-
-
-
supportive housing
provided without
discrimination
5. Support a human
Human Services
services delivery
Commission (HSC)
$ 85,793
$ 10,950
$ 96,743
system to address the
(15%)
needs of homeless
persons and special
Non-profit capital
needs populations
improvements
6. Promote employment
Economic
opportunities
development
7. Make improvements
Public
to low income
improvements in
-
-
-
neighborhoods
sidewalks, streets
Grant Admin (20%)
$ 114,391
-
$ 114,391
TOTAL
$ 571,956
$ 660,166
$ 1,232,122
Attachment 2, Page 1 of 1
I�, CORNERSTONE
M� COMMUNITY HOUSING
January 18, 2022
Mayor VanGordon and Springfield City Council
225 5th Street
Springfield, OR 97477
Dear Mayor and Council members,
PO Box 11923 Eugene, OR 97440
Office: 541-683-1751
www.cornerstonecommunityhousing.org
In 2020, Council awarded $631,000 in CDBG grant funds to Cornerstone Community Housing for a proposed
50 -unit affordable rental housing development at 525 Mill Street. In September 2021, Cornerstone
submitted an offer to purchase the Mill Street property owned by the Springfield School District. However,
the District ultimately selected a different buyer.
CDBG funding is a vital tool for developing affordable housing. Land acquisition is a growing concern among
developers and this funding can be used and leveraged for that purpose. Funding committed by the City is
essential to further leverage the dollars available at the State and local levels. We ask that you reserve a
portion of the CDBG funds available through the 2022 RFP for the specific purpose of land acquisition. Our
goal is to have site control of a property in time to apply for HOME funds this fall and having access to CDBG
funding to purchase a site would be invaluable.
Cornerstone is steadfastly committed to acquiring a site in Springfield for new construction of affordable
housing. Our development team is currently performing due diligence on several potential sites in the City
of Springfield. This includes verifying property feasibility for development and competitive financing
sources based on factors that include location, size, and environmental conditions.
Our objective is to build a development of similar unit count to our Mill Street proposal or larger, with a
similar population focus—low-income families with children, seniors, survivors of domestic violence, and
people with disabilities.
We will keep you and City Staff apprised of our progress. We look forward to developing a Springfield
project and are grateful for Council's partnership to accomplish this.
Sincerely,
TX00 10_%���
Darcy Phillips
Executive Director
Cornerstone Community Housing is committed to building quality, affordable housing for people living on limited incomes and offering services that
promote opportunities for personal growth and economic independence.
Attachment 3, Page 1 of 1