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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 Page 1 of 1