HomeMy WebLinkAboutItem 02- FY25 CDBG Annual Action Plan AGENDA ITEM SUMMARY Meeting Date: 2/20/2024
Meeting Type: Work Session
Staff Contact/Dept.: Erin Fifield / DPW
Staff Phone No: 726-2302
Estimated Time: 15 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: Encourage Economic
Development and
Revitalization through
Community Partnerships
ITEM TITLE: FISCAL YEAR 2025 DRAFT COMMUNITY DEVELOPMENT BLOCK GRANT
ANNUAL ACTION PLAN
ACTION
REQUESTED:
Provide direction on the proposed Fiscal Year (FY) 2025 Draft Community
Development Block Grant Annual Action Plan to be published for public comment.
ISSUE
STATEMENT:
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 an Annual Action Plan to
indicate how the City intends to address the strategies identified in the Eugene-
Springfield Consolidated Plan. The City’s Citizen Involvement Process for CDBG
funds includes publishing a draft Action Plan for public comment.
ATTACHMENTS: 1: Council Briefing Memo
2: Public Comment: Early Child Care Business Accelerator
3: Letter from Catholic Community Services of Lane County
4: Proposed FY2025 CDBG Allocation
DISCUSSION/
FINANCIAL
IMPACT:
In FY2025, staff estimate Springfield will receive a HUD CDBG entitlement grant
of $555,345 (the same amount as FY24). Currently, the City does not anticipate
additional funds from loan repayments (i.e. program income) or a carryover of
previous project funds (e.g. when a project does not move forward).
Our existing CDBG projects are seeing significant cost increases and continued
demand while HUD’s CDBG allocations had stagnated or been reduced in recent
years. Staff anticipate the FY25 CDBG allocation from HUD will provide only
enough CDBG funds to fund existing programs. Thus, staff are not planning to
solicit for additional projects this year through a CDBG Request for
Proposals.
The City continues to have prior year CDBG funds available to put toward awarded
projects, including:
• $505,494 to help Catholic Community Services of Lane County (CCSLC)
build an addition to their existing service center to create a day use center
for homeless families;
• $225,000 to help Relief Nursery purchase land to expand their existing
child care site assisting low-income children and families; and
• $85,000 to plant trees in low-income, low-canopy neighborhoods.
M E M O R A N D U M City of Springfield
Date: 2/20/2024
To: Nancy Newton COUNCIL
From: Jeff Paschall, Community Development Division
Director
Erin Fifield, Community Development Analyst
BRIEFING
Subject: FISCAL YEAR 2025 DRAFT COMMUNITY
DEVELOPMENT BLOCK GRANT ANNUAL
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 an Annual Action Plan to indicate how the City intends to
address the strategies identified in the Eugene-Springfield Consolidated Plan. The City’s
Citizen Involvement Process for CDBG funds includes publishing a draft Action Plan for
public comment.
COUNCIL GOALS/
MANDATE:
Encourage Economic Development and Revitalization through Community Partnerships
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. City Council adopted the 5-year plan in Spring 2020. The Plan sets the goals
and activities for the use of federal CDBG and HOME funds.
Annual 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 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.
In FY2025, staff estimate Springfield will receive a HUD CDBG entitlement grant of $555,345
(the same amount as FY24). Currently, the City does not anticipate additional funds from loan
Attachment 1
Page 1 of 5
MEMORANDUM Page 2
repayments (i.e. program income) or a carryover of previous project funds (e.g. when a project
does not move forward).
Our existing CDBG projects are seeing significant cost increases and continued demand while
HUD’s CDBG allocations had stagnated or been reduced in recent years. Staff anticipate the
FY25 CDBG allocation from HUD will provide only enough CDBG funds to fund existing
programs. Thus, staff are not planning to solicit for additional projects this year through a
CDBG Request for Proposals.
FY2025 CDBG ANNUAL ACTION PLAN PROCESS:
Proposed timeline
• February
o The Community Development Advisory Committee (CDAC) holds a public
hearing to hear about community needs.
• March
o The FY25 Draft CDBG Annual Action Plan is published for 30 days for public
comment.
• April
o The CDAC holds a public hearing on the draft Annual Action Plan and makes a
recommendation to City Council.
o City Council meets during work session to review the CDAC recommendation.
• May
o The City Council meets during regular session to approve a funding allocation
for the FY25 CDBG Annual Action Plan.
o Staff submit the FY25 CDBG Annual Action Plan to HUD for approval.
• Late Summer
o FY25 CDBG funds become available.
Public Participation
The CDAC met on February 7, 2024, and held a public hearing to hear about needs from the
community. Between written and in-person opportunities for comment, a total of three
comments were received. One person expressed concern over people driving while on drugs and
hitting cyclists. Another person expressed support for property owners to consider building
Accessory Dwelling Units on large lots throughout the City.
The third comment was from the Lane County Early Child Care Business Accelerator Program.
This is a four-month program that aims to address the lack of childcare in the region by
providing a free curriculum to students with the intention of opening new in-home childcare
businesses. Staff with the Early Child Care Business Accelerator Program have expressed an
interest in partnering with the City of Springfield in helping fund micro-enterprise grants for
Springfield residents that graduate from the program. If funded with CDBG funds, this project
would align with the Consolidated Plan strategy to “Promote economic development and
employment opportunities through the creation of jobs and business development.”
See Attachment 2 for additional information.
The CDAC discussed the status of current programs, and the anticipated funding amount for
FY25 entitlement, and are recommending to Council a proposed allocation for the FY2025
CDBG Annual Action Plan. See below for detail.
Attachment 1
Page 2 of 5
MEMORANDUM Page 3
Overview of CDBG strategies and activities
Below is a summary of Springfield’s efforts toward addressing the Eugene-Springfield
Consolidated Plan strategies, as well as the CDAC’s recommended allocation for the FY25 Draft
Annual Action Plan.
Consolidated Plan strategy Proposed
allocation
with FY25
CDBG funds
1. Increase the supply of affordable housing
The City has acquired two properties through Lane County’s tax foreclosed
transfer program. The City has also recently purchased property for low-
income housing with American Rescue Plan Act (ARPA funds. The City has
just over $900,000 remaining to purchase additional land with ARPA funds,
which are more flexible to use than CDBG funds.
The City has $117,548 in FY23 CDBG funds allocated to this strategy but is
proposing to reallocate those funds toward the Springfield Homeownership
Program.
$ 0
2. Rehab program for lLow-iIncome hHomeowners
Springfield’s Home Repair program provides urgent home repair services as a
grant to very low-income Springfield homeowners. This program continues to
reach about 70 low-income homeowners each year, most of whom are seniors.
The City spent $264,741 on this program in FY23.
$ 260,974
3. Down payment assistance for low-income residents
This program was revamped in FY2023 following Council direction,
recognizing that prospective low-income homebuyers will need greater
assistance in order to purchase a home in the current housing market; six (6)
loans of $25,000 each have been completed since March 2023. The program
is currently paused due to limited funds available.
There is an additional $117,548 in FY23 CDBG funds proposed to be
reallocated toward this strategy.
$ 100,000
4. Remove barriers to affordable and supportive housing
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.
$ 0
Attachment 1
Page 3 of 5
MEMORANDUM Page 4
5. Support a hHuman sServices dDelivery sSystem
Springfield can allocate up to 15% of its CDBG funds to support social
services 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.
*The City has allocated prior year CDBG funds toward capital improvements
undertaken by non-profit agencies. See below for current status.
$ 83,302
(HSC)
6. Promote economic development and employment opportunities through
the creation of jobs and business development
The City is not using CDBG funds to address this strategy at this time.
$ 0
7. Make strategic investments to improve low-income neighborhoods
The City previously allocated $85,000 in FY23 CDBG funds to plant trees in
low-income, low-canopy neighborhoods. The City’s Development and Public
Works Operations Division purchased these trees in December 2023, with the
aim to plan them in Spring 2024. With the recent ice storm, Operations staff
are re-evaluating this timeline given other City priorities, and whether they’d
need to contract out for this project.
$ 0
Grant Administration and Planning
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.
$ 111,069
*Prior year CDBG-funded projects to “Support the hHuman sServices dDelivery sSystem”
include:
• $505,494 in CDBG funds to help Catholic Community Services of Lane County
(CCSLC) build an addition to their existing service center to create a day use center for
homeless families;
o This project has experienced delays through the HUD-required environmental
review process. As such, costs have increased, and expenses have been incurred.
CCSLC is currently in the process of evaluating additional funding options and
other ways to decrease the costs of this project.
o CCSLC included a letter providing an update. See Attachment 3.
• $225,000 in CDBG funds to help Relief Nursery purchase land to expand their existing
childcare site assisting low-income children and families;
o Staff are currently completing the environmental review. Relief Nursery has a
Purchase and Sale Agreement for the property through July 2024; staff aim to be
completed with the review by that time.
Attachment 1
Page 4 of 5
MEMORANDUM Page 5
Next Steps
The proposed DRAFT allocation for FY2025 CDBG Annual Action Plan will be published
online for 30 days for the public to comment. The CDAC recommended proposal is in
Attachment 4.
Per the City’s Citizen Participation Plan, the public will have a chance to weigh in on the
proposed draft Action Plan. In March, the City will publish a copy of the FY2025 Draft CDBG
Annual Action Plan for public comment for 30 days. As part of that publi c process, the City’s
Community Development Advisory Committee will hold a public hearing on the draft plan
during their April 3 meeting. The Community Development Advisory Committee will ultimately
make a recommendation to City Council on allocation funding and next steps.
A work session is planned with Council on April 22 to discuss the FY2025 Draft CDBG Annual
Action Plan, public comments, updated status of funding, and the CDAC’s recommended
allocation. At that time staff will seek direction from Council on next steps, given the
information known at that time.
The FY25 CDBG Annual Action Plan is scheduled to be brought before Council during a
Regular Session meeting in May for final approval.
RECOMMENDED ACTION: Provide direction on the proposed Fiscal Year 2025 Draft
Community Development Block Grant Annual Action Plan to be published for public comment.
Attachment 1
Page 5 of 5
Early Child Care Business Accelerator
Investment Opportunity: $1,000 - $50,000 ($2,000 food sponsorship, $5,000 stipend sponsor)
The Early Child Care Business Accelerator Program is a replication of Deschutes County’s highly
successful Early Child Education Business Accelerator, a four-month program that focuses on providing
the skills and knowledge to become registered or certified home-based child care providers. The Lane
Small Business Development Center (SBDC), Quality Care Connections (QCC), our local Child Care
Resource and Referral agency housed at Lane Community College, and Onward Eugene are partnering
to provide this critical program across Lane County. The series is provided free of charge to participants
and is aimed at addressing the lack of child care in the region.
The curriculum supports growing a high-quality, licensed child care program, taught by specialists at
QCC, with business topics covered by SBDC instructors. Quality Care Connections provides safety and
quality improvement training and licensing support for providers to become licensed with the
Department of Early Learning and Care. A Licensed Registered Family provider can have up to 10
children in their home, and a Certified Family Provider can have up to 15 children in their home. Lane
SBDC is providing business training and support so that early educators have the skills necessary to
become successful small business owners.
The training is intended for new child care businesses planning to open as well as recently established
providers who require expanded business skills and state licensure. Students are assigned an SBDC
business advisor and licensed graduates receive $5,000 to start their business, as well as continued
wrap-around services from both QCC and the SBDC after the program. In the promotion of the first
cohort, scheduled to begin September 2023, Quality Care Connections received applications from 60
interested individuals from across Lane County, easily filling the 10 available slots. A partnership with
the City of Eugene’s micro-enterprise grant program allowed for an increase to 20 total slots. In total 19
people started the program, 17 completed the 4 month course, and 11 are on track to complete their
business plans and become licensed with Oregon’s Department of Early Learning and Care.
Community Need and Partner Engagement:
The program was conceptualized in 2020 in response to the child care crisis that Oregon families have
been facing for years. Between 1999 and 2020, Oregon lost 32,000 slots in small family child care
homes, according to the latest report from Oregon State University.
Currently, all but one of Oregon’s 36 counties are considered “child care deserts” for infants and
toddlers, defined as a community with more than three children for every regulated child care slot. Half
of all counties have the same shortage of access for preschool-aged children. In Lane County, just 26%
of children ages 0-5 years have access to a child care slot with a licensed, regulated child care provider.
For infants and toddlers, that figure drops to 17%.
Goals and Measurement:
Our two-year goal is to support 30 new Oregon registered or certified home‐based child care
businesses through the Early Child Care Accelerator series and create 250 new child care slots in Lane
County.
Attachment 2
Page 1 of 1
Attachment 3
Page 1 of 1
FY2025 DRAFT COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION
PLAN
CDBG REVENUES (estimated) ALLOCATION
FY 2024 Entitlement Funds (EN) $ 555,345
Other Funds
• Carryforward from previous years
• Program Income
$ 0
TOTAL $ 555,345
CDBG EXPENDITURES (estimated)
Consolidated Plan Strategy Activity Amount
1. Increase the supply of affordable
housing Acquisition, improvements, etc -
2. Rehabilitate existing housing stock
affordable to low-income persons Home Repair Program $ 260,974
3. Provide down payment assistance
for home ownership
Springfield Homeownership
Program (SHOP) $ 100,000
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) $ 83,302
Non-profit capital
improvements -
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 -
Planning and Administration $ 111,069
TOTAL $ 555,345
Attachment 4
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