HomeMy WebLinkAboutItem 02 CDBG Annual Action PlanAGENDA ITEM SUMMARY
Meeting Date:
Meeting Type:
Staff Contact/Dept.:
Staff Phone No:
Estimated Time:
5/23/2022
Work Session
Erin Fifield / DPW
726-2302
20 Minutes
SPRINGFIELD Council Goals: Encourage Economic
CITY COUNCIL Development and
Revitalization through
Community Partnerships
ITEM TITLE: FISCAL YEAR 2023 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) ANNUAL ACTION PLAN
ACTION
Review funding recommendations and provide direction to staff to prepare final
REQUESTED:
Fiscal Year 2023 CDBG Annual Action Plan for approval.
ISSUE
Each spring, City Council must approve funding allocations for the use of
STATEMENT:
Community Development Block Grant (CDBG) funds for the next fiscal year in a
document called the Annual Action Plan. A public hearing was held on the draft
plan by the Community Development Advisory Committee (CDAC) on March 9
and May 11, 2022. The CDAC has subsequently made a recommendation to
Council on the funding allocation for the Annual Action Plan. Council will have the
opportunity to formally approve the FY2023 CDBG Annual Action Plan during the
June 6 Regular Session.
ATTACHMENTS:
1: Council Briefing Memo
2: 2020 Eugene -Springfield Consolidated Plan strategies
3: FY2023 CDAC Recommendation
DISCUSSION/
The Community Development Advisory Committee (CDAC) has made a
FINANCIAL
recommendation to Council for the FY2023 CDBG Annual Action Plan, following
IMPACT:
a public hearing on March 9 and May 11, 2022 and a 30 -day public comment
period. The FY 2023 CDBG allocation is an estimated allocation; The U.S.
Department of Housing and Urban Development has still not released final
numbers. The CDAC's recommendation includes a proposal on how to adjust the
final allocation based on final revenues.
The FY2023 CDBG Annual Action Plan process included a Request for Proposals
(RFP) to non -profits, public agencies, and other eligible organizations seeking
CDBG funds for various community projects that would serve low -moderate
income people. The RFP was released on February 2 and closed mid-March. One
application (and one letter of intent) for CDBG funds were received through the
RFP process. During a CDAC meeting on March 30, the CDAC reviewed both
requests; applicants were available to speak to their proposals and answer questions
from the committee.
The CDAC's Annual Action Plan recommendation includes funding for both
requests from 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), renewed funding for homeownership
assistance, funding to increase the supply of affordable housing, and grant
administration and planning,
MEMORANDUM
City of Springfield
Date: 5/23/2022
To: Nancy Newton, City Manager COUNCIL
From: Erin Fifield, Community Development Analyst BRIEFING
Tom Boyatt, Community Development Director
Subject: FISCAL YEAR 2023 COMMUNITY MEMORANDUM
DEVELOPMENT BLOCK GRANT (CDBG)
ANNUAL ACTION PLAN
ISSUE: Each spring, City Council must approve funding allocations for the use of Community
Development Block Grant (CDBG) funds for the next fiscal year in a document called the
Annual Action Plan. A public hearing was held on the draft plan by the Community
Development Advisory Committee (CDAC) on March 9 and May 11, 2022. The CDAC has
subsequently made a recommendation to Council on the funding allocation for the Annual
Action Plan. Council will have the opportunity to formally approve the FY2023 CDBG Annual
Action Plan during the June 6 Regular Session.
COUNCIL GOALS/
MANDATE:
Encourage Economic Development and Revitalization through Community Partnerships
MIT/1 CICe4 Z1111►113
FY2022 Annual Action Plan
Each year, the City is entitled to receive an allocation of CDBG funds from the U.S. Department of
Housing and Urban Development (HUD). 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 [see Attachment 2 of this packet].
Revenues
The revenues expected in Fiscal Year (FY) 2023 through the CDBG program include an estimated
entitlement allocation of $571,956 from HUD, as well as the repayment of CDBG loans and other
carryover funds from the previous year.
CDBG REVENUES (estimated)
Amount (TOTAL)
FY 2022-2023 Entitlement Funds
$ 571,956
Other Resources: Unused funds from previous years, program
income, loan repayments
$ 762,402
TOTAL
$ 1,334,358
Attachment 1 Page 1 of 4
MEMORANDUM
Council Direction
Page 2
During Council work session on January 24, 2022, Council directed staff to release a DRAFT FY
2023 CDBG One Year Action Plan for public comment, outlining strategies and activities for funding.
Council also directed staff to release a Request for Proposals, soliciting applications for the proposed
amount of anticipated unallocated CDBG funds.
Public Participation
The DRAFT FY2023 CDBG One Year Action Plan was released for public comment for 30 days in
March. Three comments were received over email. Additionally, two public hearings were held on the
draft plan by the Community Development Advisory Committee on March 9, 2022 and May 11, 2022.
No one spoke at the public hearings. This is a summary of all comments received:
Kristen Karle with St. Vincent de Paul Society of Lane County, Inc. — Kristen emailed to
inform the City about the need of older affordable housing stock in need of capital repairs
(e.g. re -roofing, window replacement). These projects are income restricted, and the state has
limited programs to fund these types of rehabilitation needs. Thus, it would be helpful to use
CDBG funds to help maintain these properties for these residents.
June Fothergill with the Springfield Shelter Rights Alliance — June emailed to share a list of
action items that her group would like to see the City Council act upon to address the needs of
our unhoused neighbors. One of the items on the list: "Make the priority for CDBG fund to
make positive impacts on reducing homelessness."
June Fothergill with Ann's Heart Women's Shelter — June emailed to share a letter sent to
City Councilors about the vision for Ann's Heart to create a "transitional shelter to help
unhoused women have a safe space to recover from trauma and start to rebuild their lives."
June expressed what the nonprofit would be able to do once they had funds to purchase and
obtain a house.
Request for Proposals
The City released a 2022 CDBG Request for Proposals (RFP) on February 2, asking local non -profits
and organizations to submit project proposals that align with the CDBG program and Eugene -
Springfield Consolidated Plan.
Given Council's proposed funding for existing City programs and contributions, including the Home
Repair Program, contribution to the Lane County Human Services Commission (HSC) for social
services, and grant administration and planning, an estimated $260,000 was made available through
the RFP.
The RFP was released February 2, 2022 and was open through March 15, 2022. One application and
one letter of intent was received. The Community Development Advisory Committee (CDAC) met on
March 30, 2022 to evaluate proposals and meet with the applicants. After discussion and review, the
CDAC recommended funding both requests with CDBG funds in FY2023:
Summary of Proposals:
1.
Applicant / St. Vincent de Paul Society of Lane County
Organization
....................................................................................................................................................................................................................................................................................................................
Project Name Ash Meadows Roof Rehabilitation
Summary Replace roofs on 14 units (out of 18 total) in order to help
Description of maintain this existing stock of affordable housing. St. Vincent de
proposal Paul owns Ash Meadows, an existing affordable housing
complex located at 69t'' and A Street. There are 2- and 3 -bedroom
........ ......... ......... ... ..... ..................................................................................................................
Attachment 1 Page 2 of 4
MEMORANDUM
2.
Page 3
......................................................................................................................................................................................................................................................................................................................................................................................................................................
Applicant /
City of Springfield — Development and Public Works
Organization
............................................................................................................:........................................................................................................................................................................................................................................................................................................................1
Project Name
Tree Planting Pilot Project
Summary
To plant trees in low-income neighborhoods with a low tree
Description of
canopy cover. The City of Springfield Operations Division is
proposal
revamping the tree program, and would work with Friends of
Trees to
...........................................................................................................:........................................................................................................................................................................................................................................................................................................................:
CDBG $ request
$ 75,000
...........................................................................................................:........................................................................................................................................................................................................................................................................................................................:
Estimated staff
$ 10,000
delivery costs
............................................................................................................:........................................................................................................................................................................................................................................................................................................................:
Community Development Advisory Committee (CDAQ recommendation
At the time the Community Development Advisory Committee met on March 30 to discuss an
allocation recommendation, the City had received additional revenues which exceeded the amount in
the draft allocation and RFP requests. The CDAC expressed interest in additional funding for the
City's Home Repair Program and Springfield Home Ownership Program (SHOP), and recommended
meeting again in May to discuss options, requesting additional information about both programs:
Home Repair Program — The City has continued to see the demand for this program. With
increased labor and materials costs, annual program expenses are closer to $180,000 -
$200,000. With increased outreach, staff estimate the program could reach more folks and
take on more expensive repairs (e.g. roof repairs), without needing to hire more staff. Staff
suggested allocating $250,000 for this program in FY2023.
Homeownership Assistance — The City has struggled to provide homeownership assistance
under this program in recent years. Staff spoke with mortgage loan officers, and staff at
devNW, about ways to reconfigure the program to meet demand. It is thought CDBG funds
could still be helpful in assisting low-income homebuyers in purchasing a home in the current
market, though only with changes to the current program (e.g. increasing the loan amount up
from $7,000 per household; increasing outreach to lenders on ways to use the program; and
allowing greater flexibility in how the funds can be used). Staff suggested allocated $100,000
for this program in FY2023.
The CDAC also expressed interest in supporting the strategy to "Increase the Supply of Affordable
Housing", but was uncertain as to what the demand is for these funds, and whether there'd be a project
ready to move forward in the next year.
For Fiscal Year 2023, the CDAC recommends funding the Home Repair Program at $275,000, and
funding Homeownership Assistance at $100,000. The CDAC also recommends increasing the loan
limit for homeownership assistance to $25,000 per household. The remaining unallocated funds were
recommended to be allocated toward the strategy to increase the supply of affordable housing.
Attachment 1 Page 3 of 4
MEMORANDUM
Page 4
The CDAC recognized that some projects may or may not move forward as hoped. In turn, the CDAC
aims to meet again in 6 months to monitor how the programs are moving forward, re-evaluate the
need, and make a renewed recommendation for amendment to Council if needed.
To note: The U.S. Department of Housing and Urban Development has still not released the final
allocation of CDBG funds for FY2023, though changes are expected to be minimal. As such, the
CDAC further recommends that any changes to funding (either increased or decreased) be adjusted as
follows:
Maximize the funding allowed to "Support a Human services Delivery System" and Grant
Planning and Admin; and
Make any remaining funding adjustments to the strategy to "Increase the Supply of Affordable
Housing".
See Attachment 3 for the CDAC's recommendations for FY2023 CDBG One Year Action Plan.
Next steps
Following Council direction, a final draft of the FY2023 CDBG Annual Action Plan will come to
Council during the June 6 Council Regular Session for approval and submission to the U.S.
Department of Housing and Urban Development.
RECOMMENDED ACTION: Provide direction to move forward with the CDAC recommendation
on how to allocate funds for the FY2023 CDBG One Year Action Plan - either as presented or with
changes as identified by Council.
Attachment 1 Page 4 of 4
Priority Needs
EUGENE • SPRINGFIELD
2020 CONSOLIDATED PLAN
for Housing E Community Development
Priority Need
Explanation
Comments
Renters
. About three quarters of moderate- and low-
• Between 2010 and 2019, the median rental rate rose to $1,373 in
Low- and very low-income
income renters spend more than 30% of their
Eugene (47% increase) and $1,181 in Springfield (58% increase)
people need increased access
income on housing costs (Eugene — 79%,
. Significant increase in need from 2013 to 2017;
to quality affordable rental
Springfield —74%)
Many more moderate -income households spend more
housing as well as rental
. The majority of low-income renters spend
than 30% on housing
assistance
more than 50% of their income on housing
Many more low- and very income households spend
costs (Eugene — 68%, Springfield — 57%)
more than 50% on housing
Homeowners
. A significant majority of low-income owners
• Low-income households spending more than 30% of income
Low- and very low-income
experience over -crowding, substandard
housing have increased in Eugene but remains steady in
people need increased access
housing, or a housing cost burden (Eugene —
Springfield
to affordable homeownership
78%, Springfield —59%)
. Low-income households spending more than 50% of income
opportunities and support to
. A significant majority of moderate- and low-
housing have increased in both Eugene and Springfield
remain homeowners
income owners spend more than 30% of their
income on housing costs (Eugene — 66%,
Springfield — 57%)
• A large percentage of low-income owners
spend more than 50% of their income on
housing costs (Eugene — 59%, Springfield —
39%)
2020 Consolidated Plan 15 Eugene and Springfield, OR
Attachment 2, Page 1 of 5
If zINNY
41:q:Y!1
EUGENE • SPRINGFIELD
2020 CONSOLIDATED PLAN
for Housing E Community Development
Priority Need
Explanation
Comments
People experiencing
. A total of 2,165 homeless individuals were
• Majority of the homeless population in Eugene (73%) and
Homelessness
served in FY 2019 by agencies funded by
Springfield (88%) are experiencing unsheltered homelessness
People need access to
Lane County
Shortage of low -barrier year-round emergency shelter
housing and supportive
. The three public school districts in Eugene
and shelter beds in Eugene and Springfield
services to prevent them from
and Springfield report 1,629 homeless youth
• In 2017, one in four persons exiting permanent housing in Lane
becoming homeless and to
during 2019 (includes students who are
County returned to homelessness
leave homelessness
staying with friends orfamily)
. There are no youth -specific resources for transition -age youth
• The definition of homeless for purposes of this
(18-24)
Plan includes people who are"doubled-up"
. Due to low rental vacancy (3.6% in Eugene and 3.4% in
• Shortage of year-round low -barrier emergency
Springfield) and even lower affordable unit rental vacancy, the
shelter beds, especially for single individuals
Lane County Continuum of Care struggles with voucher or tenant -
and victims of Domestic Violence
based programs
• Lack of diversion and rapid exit services for
those exiting Permanent Housing
Non -Homeless Special
. People with special needs including families
• There were 32,438 elderly (over the age of 65) and 3,310 frail
Needs Populations
with children, seniors, ex -offenders, people
elderly (that need assistance with daily living) in Eugene -
Special needs populations
with HIV/AIDS, victims of domestic violence,
Springfield (2017 ACS)
need additional support as it
people with drug and alcohol addictions,
. The disability rate is 13.5 percent in Eugene and 18.6 percent in
relates to affordable
people who are evicted or foreclosed, people
Springfield
housing, human services, and
with physical and mental disabilities,
. Physical disabilities can include hearing, vision, cognitive,
employment opportunities
veterans, youth, and youth aging out of foster
ambulatory, self-care or independent living difficulties
care
. In the Community Survey, respondents identified mental health
and addiction services and housing services as the greatest
social service needs. Respondents also identified assist human
service agencies with facilities acquisition or improvements as the
most needed Community Development Need
2020 Consolidated Plan 16 Eugene and Springfield, OR
Attachment 2, Page 2 of 5
EUGENE - SPRINGFIELD
2020 CONSOLIDATED PLAN
for Housing E Community Development
Employment Opportunities
. Job growth and low unemployment rates has
• The United Way ALICE report found that 58% of all jobs in Oregon
People who have low
not yielded better wages for many younger
are low-wage (less than $20/hour), with contract positions (non -
incomes, are unemployed or
residents and workers lacking necessary skills
benefited) increasing, a factor in job and housing insecurity
underemployed need a
. The new workforce of youth 16-24 years old
• There is a need to increase high -wage and living wage career
broader range of employment
accounts for 38% of the workforce
employment opportunities for youth
opportunities, including self-
. Current low unemployment rates and
• Lower wages are exacerbating housing affordability for some
employment
retirements in workforce has created demand
workers
for skilled workers in some industries
Low -Income Areas & Areas
. There are several areas in this community that
• Need to support low- and moderate- income neighborhoods
of Slums and Blight
are or could meet the HUD requirement for an
through public improvements such as infrastructure and public
Geographic areas that meet
area of slums and blight which would allow
facilities
federal criteria as areas of
different uses of CDBG funds. These areas
. Low -Income Areas have been mapped for both jurisdictions
slums and blight or as low-
could benefit from increased investments in
. Support currently designated slum/blight areas
income areas and need
the area
additional support for
. There are several areas of this community that
rehabilitation and public
are characterized by 51% or more low- to
improvements
moderate -income residents, which can benefit
from increased investments in this area
2020 Consolidated Plan 17 Eugene and Springfield, OR
Attachment 2, Page 3 of 5
Affordable Housing Strategy
EUGENE • SPRINGFIELD
2020 CONSOLIDATED PLAN
for Housing E Community Development
2020 Consolidated Plan 18 Eugene and Springfield, OR
Attachment 2, Page 4 of 5
Priority Needs
HOME
Eugene
Springfield
Strategy/Goal
Addressed
possible Examples
p
Measurements
Consortium
CDBG
CDBG
Increase the supply of
Renters,
Land Acquisition.
Number of housing units
400
5
5
affordable housing
Homeowners,
Development of new rental
constructed, reconstructed, acquired
(HOME and CDBG)
Homeless, Special
housing. Operating Support
or preserved
Number of CHDOs assisted
3
Needs
for Community Housing
Development Organizations.
Housing for homeless added
100
Number of sites acquired
2
2
Rehabilitate existing
Renters, Homeless,
Continue and expand publicly
Number of rental units rehabilitated
350
5
housing stock
Special Needs, Low-
supported rehabilitation and
Number of homeowner units rehabilitated
affordable to low-
Income Areas,
accessibility improvements.
income persons
Homeowners
150
300
CDBG
Provide down
Homeowners
Assist low-income residents
Households assisted with direct assistance
payment assistance
with the first-time purchase of
to home buyers
for homeownership
a home.
20
20
(CDBG)
Provide rental
Renters
Assist low-income residents to
Households provided rental assistance
assistance for
remain in stable housing.
housing stability
20
and homelessness
prevention (HOME)
Remove barriers to
Renters,
Support programs that assure
Maintain Housing Policy board
affordable and
Homeowners,
housing opportunities are
Number of fair housing events
20
supportive housing
Homeless, Low -
provided without
Maintain fair housing services
,/
,/
(CDBG)
Income Area
discrimination. Support
Non -Homeless
Housing Policy Board. Update
Fair Housing Plan.
Update Fair Housing Plan
Special Needs
2020 Consolidated Plan 18 Eugene and Springfield, OR
Attachment 2, Page 4 of 5
Community Development Strategy
EUGENE • SPRINGFIELD
2020 CONSOLIDATED PLAN
for Housing E Community Development
2020 Consolidated Plan 19 Eugene and Springfield, OR
Attachment 2, Page 5 of 5
e
Eugene
Springfield
Strategy
Priority Needs
Possible Examples
Measurements
CDBG
CDBG
Addressed
Support a human
Homeless,
Fund capital improvements to facilities
Persons assisted with public facility activities
20,000
5,000
services delivery
Special Needs
owned by non -profits.
Persons assisted with public service activities
system to address the
Fund non-profit services through the
needs of homeless
Human Services Commission.
100,000
60,000
persons, special needs,
and other low-income
Fund job training.
Number of public facilities improved
p P
5
2
populations (CDBG)
Fund housing stability counseling and
Number of transitional or emergency beds
assistance.
added
20
5
Promote economic
Employment
Provide below market financing to local
Jobs created or retained
150
5
development and
Opportunities
businesses creating or retaining jobs.
Businesses assisted
25
1
employment
Provide micro -enterprise training,
Micro business trainees
opportunities through
and development opportunities.
the creation of jobs and
business development
150
5
(CDBG)
Make strategic
Renters, Owners,
Provide financing for activities which
Businesses assisted with fagade treatment or
investments to improve
Homeless, Special
eliminate slums and blight, including
building rehab
1
low- income
Needs, Low -Income
acquisition, clearance, rehab and historic
Number of projects completed
neighborhoods and
Areas and Slums &
preservation and economic development
2
2
other areas of slums
Blight, Employment
activities, infrastructure and public facility
persons assisted with public improvement activity
and blight (CDBG)
Opportunities
improvements.
5,000
5,000
2020 Consolidated Plan 19 Eugene and Springfield, OR
Attachment 2, Page 5 of 5
CDBG REVENUES (estimated)
TOTAL Funds
FY 2022-2023 Entitlement Funds
$ 571,956
Other Resources
• Unused funds from previous years, program income,
$ 762,402
loan repayments
TOTAL
$ 1,334,358
CDGB EXPENDITURES (estimated)
CDAC recommendation
Con Plan Strategy
Activity
Amount (TOTAL)
1. Increase the supply of
Acquisition, improvements,
$ 500,104
affordable housing
etc
2. Rehabilitate existing housing
stock affordable to low-income
Home Repair Program
$ 275,000
persons
3. Provide down payment
Springfield Homeownership
$ 100,000
assistance for home ownership
Program (SHOP)
4. Remove barriers to
Support programs that assure
affordable and supportive
housing opportunities are
$
housing
provided without
discrimination
5. Support a human services
Human Services Commission
$ 104,863
delivery system to address the
(HSC) (15%)
needs of homeless persons
and special needs populations
Non-profit capital
$ 155,000
improvements
6. Promote employment
Economic development
$ -
opportunities
7. Make improvements to low
Public improvements in
$ 85,000
income neighborhoods
sidewalks, streets
Grant planning and admin
Grant planning and admin
$ 114,391
(20%)
TOTAL
$ 1,334,358
Attachment 3 Page 1 of 1