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HomeMy WebLinkAboutItem 01- FY24 CDBG Annual Action PlanAGENDA ITEM SUMMARY SPRINGFIELD CITY COUNCIL Meeting Date: Meeting Type: Staff Contact/Dept.: Staff Phone No: Estimated Time: Council Goals: 4/10/2023 Work Session Erin Fifield / DPW 726-2302 20 Minutes Promote and Enhance our Hometown Feel while Focusing on Livability and As communicated to Council with a December 9, 2022 Communication Packet Memo, staff anticipated that the FY24 CDBG entitlement allocation would provide only enough CDBG funds to fund existing programs. As such, staff did not solicit for additional projects this year through a CDBG Request for Proposals. During the public comment and public hearing, two people provided testimony: Kelly Sutherland with Relief Nursery — a child abuse prevention nonprofit that exclusively serves low-income families — spoke of the increased demand for their services and that they are looking to buy land in order to expand. Darcy Phillips with Cornerstone Community Housing wrote about their affordable housing development project on 16' and Q St to serve low-income seniors, and request that the City fill a gap in funding with local resources. The CDAC's Annual Action Plan recommendation includes funding for existing City programs and contributions, including the Home Repair Program for very low- income homeowners, the Springfield Homeownership Program for down payment assistance for low-income households, a contribution to Lane County Health and Human Services to support staffing of local non -profits that serve low-income Springfield residents, and grant administration and planning. Environmental Quality ITEM TITLE: FISCAL YEAR 2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN ACTION Review funding recommendations from the Community Development Advisory REQUESTED: Committee and provide direction to staff to prepare final Fiscal Year 2024 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. The Community Development Advisory Committee has held two public hearings and has made a recommendation to Council on the funding allocation for the Annual Action Plan. Council will have the opportunity to formally approve the Fiscal Year 2024 CDBG Annual Action Plan during the May 1 Regular Session. ATTACHMENTS: 1: Council Briefing Memo 2: FY2024 CDAC Funding Recommendation 3: FY2024 draft CDBG Annual Action Plan for public comment DISCUSSION/ The Community Development Advisory Committee (CDAC) has made a FINANCIAL recommendation to Council for the Fiscal Year 2024 (FY24) CDBG Annual Action IMPACT: Plan, following public hearings on February 8 and March 22, 2023 and a 30 -day public comment period. As communicated to Council with a December 9, 2022 Communication Packet Memo, staff anticipated that the FY24 CDBG entitlement allocation would provide only enough CDBG funds to fund existing programs. As such, staff did not solicit for additional projects this year through a CDBG Request for Proposals. During the public comment and public hearing, two people provided testimony: Kelly Sutherland with Relief Nursery — a child abuse prevention nonprofit that exclusively serves low-income families — spoke of the increased demand for their services and that they are looking to buy land in order to expand. Darcy Phillips with Cornerstone Community Housing wrote about their affordable housing development project on 16' and Q St to serve low-income seniors, and request that the City fill a gap in funding with local resources. The CDAC's Annual Action Plan recommendation includes funding for existing City programs and contributions, including the Home Repair Program for very low- income homeowners, the Springfield Homeownership Program for down payment assistance for low-income households, a contribution to Lane County Health and Human Services to support staffing of local non -profits that serve low-income Springfield residents, and grant administration and planning. MEMORANDUM City of Springfield Date: 4/10/2023 To: Nancy Newton, City Manager COUNCIL From: Erin Fifield, Community Development Analyst BRIEFING Jeff Paschall, Community Development Division Director Subject: FISCAL YEAR 2024 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. The Community Development Advisory Committee has held two public hearings and has made a recommendation to Council on the funding allocation for the Annual Action Plan. Council will have the opportunity to formally approve the Fiscal Year 2024 CDBG Annual Action Plan during the May 1 Regular Session. COUNCIL GOALS/ MANDATE: Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental Quality MIT11 I'1e1 2111/0113 Fiscal Year 2024 CDBG 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 an Annual 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. Revenues The revenues expected in Fiscal Year 2024 (FY24) through the CDBG program include an entitlement allocation of $555,345 from HUD, as well as anticipated program income of CDBG loans. This Annual Action Plan does NOT include CDBG funds allocated in previous years for projects that are ongoing. CDBG REVENUES (estimated) Amount (TOTAL) FY 2024 Entitlement Funds $ 555,345 Program income $ 67,029 TOTAL $ 622,374 Attachment 1, Page 1 of 3 MEMORANDUM Public Participation Page 2 The DRAFT FY2024 CDBG One Year Action Plan (Attachment 3 - FY2024 draft CDBG Annual Action Plan for public comment) was released for public comment for 30 days in February/March. Two comments were received over email. Additionally, the Community Development Advisory Committee held two public hearings on February 8 and March 22, 2023. One person spoke at the February 8 public hearing. This is a summary of all comments received: Kelly Sutherland with Relief Nursery — Kelly spoke at the February public hearing. Relief Nursery is a child abuse prevention organization that exclusively serves families with 100% extremely low -incomes. She described the increased demand for services, and how their existing site in Springfield is overcrowded. She informed the committee that they are looking for additional land on which to expand and wanted to plant the seed that they have a need and open to exploring funding opportunities through CDBG. Kelly Sutherland with Relief Nursery — In advance of the March 22 meeting, Kelly emailed to say that they are continuing to look for a site and hope to secure an Option Agreement for purchase soon. Once secured, Relief Nursery plans to submit a request to the City for CDBG funding to help acquire the site. Darcy Phillips with Cornerstone Community Housing — Darcy emailed, describing a 39 -unit affordable housing development that Cornerstone is developing on 16' Street to serve low- income seniors. Darcy described the project's sources of funding, including what they have already secured, and that they would be applying to the state this summer for their primary source of funding. Darcy acknowledged there is still a funding gap and a need for local funding. Cornerstone had planned to apply for CDBG funds but learned later that the funds are not currently compatible with their development. Cornerstone is still requesting from the City an allocation of approximately $600,000 of local resources to put toward the project. Update on prior year CDBG projects CDAC members wanted information on prior year funded CDBG activities that are currently ongoing, in order to help inform their recommendation. A summary of funds available is included in the table in Attachment 2 — FY2024 CDAC Funding Recommendation. A more detailed description for each activity is below. • Increase the supply of affordable housing o City staff continue to search for land to acquire for affordable housing. A broker has been hired, and they are in the process of contacting property owners with underdeveloped land in Springfield. • Springfield Home Repair Program o This program was funded with $275,000 in FY2023. Based on current invoices, the City anticipates to spend nearly that exact amount by June 30. • Provide doy, r..^.,meatdown payment assistance for homeownership o The City had allocated $100,000 in FY2023 for this activity. Only recently was a contract finalized with devNW to help administer this activity. It is anticipated we will help one household with a,.,.,npaymei4down payment assistance by June 30. It is unclear what the overall demand will be next year. • Catholic Community Services of Lane County's OASIS day center for homeless families with children o City staff continue to work with HUD in order to finalize the Environmental Review requirements associated with this project. The City has not yet signed an agreement yet with CCS; CCS is eager to get going once the Environmental Review requirements are met. • Lane County Health and Human Services contribution o Social service needs continue to be greater than funds available. Per CDBG rules, the City's ability to contribute to this Strategy is capped at 15% of Entitlement and Attachment 1, Page 2 of 3 MEMORANDUM Page 3 Program Income. The City continues to allocate the maximum allowed to this strategy each year. Tree planting in low-income, low -canopy neighborhoods o This project will be managed by the City's Development and Public Works' Operations Division. The Department was not able to plan for this activity during this Fiscal Year but aims to complete it in FY24 Grant administration o This allocation pays for the planning and administration of the CDBG grant. The staffing costs for the City continue to exceed what is available to fund through this grant. The City continues to allocate the maximum allowed (20% of entitlement funds) to this activity each year. Community Development Advisory Committee (CDAC) recommendation Since the FY24 CDBG DRAFT Annual Action Plan was released for public comment in February, the City has received additional funding to be allocated in the Annual Action Plan. This funding was a final allocation amount from HUD, as well as additional program income received due to the repayment of CDBG loans. The CDAC expressed interest in supporting the draft Plan, and putting the majority of additional funds toward the Home Repair Program, given its consistent demand and success. The CDAC did recognize that changes can be made to the Annual Action Plan if future requests are received. That process would involve a public hearing, public comment period, recommendation by the CDAC, and ultimately a decision by City Council. Next steps Following Council direction, a final draft of the FY24 CDBG Annual Action Plan will come to Council during the May 1 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 FY24 CDBG Annual Action Plan - either as presented or with changes as identified by Council. Attachment 1, Page 3 of 3 FY2024 CDAC Funding Recommendation CDBG REVENUES (estimated) Amount FY 2023-2024 Entitlement Funds* $555,345 Program Income $67,029 TOTAL $622,374 CDGB EXPENDITURES (estimated) Anticipated CDAC carryover funds Recommendation Consolidated Plan Strategy Activity Amount Amount 1. Increase the supply of Acquisition, improvements, $ 335,659.00 $ - affordable housing etc. 2. Rehabilitate existing Springfield Home Repair housing stock affordable to Program $ - $ 315,434.98 low-income persons 3. Provide down payment Springfield Homeownership assistance for home Program (SHOP) $ 75,000.00 $ 100,000.00 ownership 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 (HSC) contribution $ - $ 95,869.61 delivery system to address the needs of homeless persons and special needs populations PROJET: CCS OASIS - day $ 485,494.00 $ center for homeless families with children. 6. Promote economic Economic development; development and Workforce training $ - $ - employment opportunities 7. Make strategic PROJECT: Tree planting in improvements to improve low-income, low -canopy $ 85,000.00 low income neighborhoods neighborhoods Grant Administration $ - 1 I $ 111,069.00 TOTAL $ 981,153.001 $ 622,373.59 Attachment 2, Page 1 of 1 ANTICIPATED TOTAL =UNDS AVAILABLE in =Y24 $ 335,659.00 $ 315,434.98 $ 175,000.00 $ 95,869.61 $ 485,494.00 $ 85,000.00 $ 111,069.00 $ 1,603,526.59 City of Springfield - CDBG Program Fiscal Year 2024 Annual 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, 2023 and ending June 30, 2024 (Fiscal Year 2024). It is one part of the Eugene -Springfield Fiscal year (FY) 2024 Annual 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 Annual Action Plan describes specific actions to be undertaken in a particular year with federal funds. The content of the Annual 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 Annual 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. Citizen Participation The City of Springfield encourages public participation in identifying specific needs and uses of CDBG funds in FY 2024. The City of Springfield Community Development Advisory Committee Eugene -Springfield FY 2024 Annual Action Plan City of Springfield CDBG program Attachment 3, Page 1 of 7 (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 February 21, 2023, Springfield released its DRAFT CDBG Annual Action Plan. A 30 -day public comment period is held open until March 22, 2023. The CDAC will hold two public hearings to hear about needs and priorities from the community, including the proposed uses in the draft allocation. Those public hearings are scheduled for February 8 and March 22, 2023. This year, the City did not release a CDBG Request for Proposals. Springfield's City Council will hold one work sessions on April 10 to discuss the needs and strategies, including the recommendation of the CDAC and the public comments received. Final approval by City Council of the Annual Action Plan is scheduled for May 1, 2023. The draft allocation is included in Attachment A. Springfield Housing Strategy The City has developed a 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. 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 in Springfield's Annual Action Plan for FY 2023 would benefit low- and moderate - income persons. 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. Eugene -Springfield FY 2024 Annual Action Plan City of Springfield 2 CDBG program Attachment 3, Page 2 of 7 Slum/Blight Program Area Snrinnh,-Irl nR Eugene -Springfield FY 2024 Annual Action Plan City of Springfield CDBG program Attachment 3, Page 3 of 7 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). For FY 2024, the City of Springfield estimates its entitlement allocation to be $554,506 (which was the FY2023 allocation). Attachment A shows the estimated sources of funding, and proposed uses, for the FY 2024 CDBG Annual Action Plan. The 5 -year 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 2024 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 2024 DRAFT Annual 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. In FY 2023, the City allocated $335,659 toward this strategy. The City continues to work on acquiring land for a new housing development. Additional funds allocated through the FY 2024 HOME Allocation will help to address this strategy in Springfield. (see FY 2024 HOME Allocation) • Community Housing Development Organization (CHDO) Operating Support - (see FY 2024 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. Increased construction costs of labor and materials, plus an interest in expanding the program, bring the proposed allocation for this program to $260,430. • Rental Rehabilitation - Through the CDBG FY 2023 Request for Proposals process, St. Vincent de Paul Society of Lane County - a local non-profit housing developer - was Eugene -Springfield FY 2024 Annual Action Plan City of Springfield CDBG program Attachment 3, Page 4 of 7 awarded $145,000 in CDBG funds to replace the roofs on a series of duplexes they own that serve residents moistly under 50% area median income. These duplexes are over 20 years old, and have a deed restriction to remain affordable for another 40 years. The City continues to work with St. Vincent de Paul toward completing this project in FY 2023. Provide Down Payment Assistance for Home Ownership • Springfield Home Ownership Program - The City of Springfield is committed to supporting low-income homebuyers. With the FY 2023 CDBG allocation of $100,000 to this program, the City is revamping the homebuyer assistance program by increasing the maximum loan amount per household, and working with lenders to find creative ways to help support homeownership. The City is partnering with DevNW to help administer this program. Currently, the City has an additional $100,000 in CDBG funds proposed to be allocated toward this program in FY 2024. 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) - 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 entitlement funds to the HSC, plus additional program income received in FY 2023. • Non-profit capital facility improvements - In FY 2022, the City awarded $332,492 in funding toward Catholic Community Services of Lane County's project to develop an addition to their community service center to serve homeless families with children. An additional $153,002 in CDBG funds were awarded in FY 2023 given the increase in construction costs, and unforeseen delays, the overall project costs have increased. The City continues to work with Catholic Community Services toward completing this project. Promote Economic Development Eugene -Springfield FY 2024 Annual Action Plan City of Springfield 5 CDBG program Attachment 3, Page 5 of 7 • There are currently no FY2024 funds allocated toward this strategy. Make Strategic Investments to Improve Neighborhoods • Address the causes of slum and blight - In FY2022, the City allocated $22,130 toward this strategy to assist the Emerald Art Center in repairing its facade. The City is continuing to work with the Emerald Art Center on completing this project. • Public improvements in low-income neighborhoods - Through the FY 2023 Request for Proposals, the City's Development and Public Works Department identified a need to address the increased heat index within low income neighborhoods. The City allocated $85,000 toward a tree planting pilot project to increase the canopy in high heat low- income neighborhoods. The City continues to work on this project. Eugene -Springfield FY 2024 Annual Action Plan City of Springfield 6 CDBG program Attachment 3, Page 6 of 7 ATTACHMENT A CDBG REVENUES (estimated) TOTAL FUNDS FY 2024 Entitlement Funds (EN) $ 554,506 Other Funds • Carryforward from previous years $ 0 • Program Income in FY23 TOTAL $ 554,506 CDBG EXPENDITURES (estimated) Consolidated Plan Strategy Activity Amount (TOTAL) 1. Increase the supply of affordable Acquisition, improvements, etc - housing 2. Rehabilitate existing housing stock Home Repair Program $ 260,430 affordable to low-income persons 3. Provide down payment assistance Springfield Homeownership $ 100,000 for home ownership Program (SHOP) Support programs that assure 4. Remove barriers to affordable and housing opportunities are supportive housing provided without _ discrimination 5. Support a human services delivery Human Services Commission $ 83,175 system to address the needs of (HSC) Non-profit capital homeless persons and special needs populations improvements _ 6. Promote employment Economic development - opportunities Public improvements in 7. Make improvements to low sidewalks, streets income neighborhoods and areas of slum and blight Address causes of slum and blight Planning and Administration $ 110,901 TOTAL $ 554,506 Attachment 3, Page 7 of 7