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HomeMy WebLinkAboutItem 14- CDBG Annual Action Plan AGENDA ITEM SUMMARY Meeting Date: 5/6/2024 Meeting Type: Regular Meeting Staff Contact/Dept.: Erin Fifield / DPW Staff Phone No: 726-2302 Estimated Time: 5 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 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN ACTION REQUESTED: Approve the Fiscal Year 2025 Community Development Block Grant Annual Action Plan, with proposed funding adjustments if the final allocation changes, and authorize the City Manager to execute all documents needed to give effect to the City’s agreement with the U.S. Department of Housing and Urban Development for these funds. ISSUE STATEMENT: 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. For Fiscal Year 2025, the City estimates $555,345 in CDBG funds will be available. City Council discussed the draft Annual Action Plan during the April 22, 2024 Council work session, giving support for the Community Development Advisory Committee (CDAC) recommendation. ATTACHMENTS: 1: Fiscal Year 2025 CDBG Annual Action Plan DISCUSSION/ FINANCIAL IMPACT: For Fiscal Year 2025, the City estimates $555,345 will be available in CDBG funds. The U.S. Department of Housing and Urban Development has not yet released the final allocation of CDBG funds for FY2025, but changes are expected to be minimal. The Annual Action Plan reflects the direction from City Council at the April 22, 2024 work session. That work session followed a public involvement process whereby the Plan was made available for a 30-day public comment period, and two public hearings were held by the Springfield Community Development Advisory Committee (CDAC) on February 7 and April 3. At the April 3 CDAC meeting, the CDAC deliberated and made a recommendation to City Council for funding allocation. Council discussed and supported this recommendation at their April 22 work session. The attached Annual Action Plan reflects Council direction from April 22, allocating funds toward the following activities: • Home Repair Program to rehab existing housing of very low-income homeowners; • SHOP program for homeownership assistance to support low-income homebuyers; • Funding to Lane County to support a human services delivery system; and • Funding to support grant planning and administration. Council further directed that if the final allocation of CDBG funds changes, the City will adjust its allocation by first maximizing the funding toward Lane County and grant planning, and then make any remaining funding adjustments proportional to the two other strategies. Eugene-Springfield FY 2025 Annual Action Plan City of Springfield CDBG program 1 City of Springfield – CDBG Program Fiscal Year 2025 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, 2024 and ending June 30, 2025 (Fiscal Year 2025). It is one part of the Eugene-Springfield Fiscal year (FY) 2025 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 2025. The City of Springfield Community Development Advisory Committee Attachment 1 Page 1 of 7 Eugene-Springfield FY 2025 Annual Action Plan City of Springfield CDBG program 2 (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 March 1, 2024, Springfield released its DRAFT CDBG Annual Action Plan. A public comment period was held open until April 3, 2024. The CDAC held two public hearings to hear about needs and priorities from the community as part of this process, including the proposed uses in the draft allocation. The first public hearing was held February 7, 2024. The second public hearing was held April 3, 2024. This year, the City did not release a CDBG Request for Proposals. Springfield’s City Council held one work session on February 20, approving the proposed allocation for comment. The Council met again on April 22 to discuss the needs and strategies, including the recommendation of the CDAC for funding. The budget 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 2025 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. Attachment 1 Page 2 of 7 Eugene-Springfield FY 2025 Annual Action Plan City of Springfield CDBG program 3 Attachment 1 Page 3 of 7 Eugene-Springfield FY 2025 Annual Action Plan City of Springfield CDBG program 4 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 2025, the City of Springfield is estimating it will receive an entitlement allocation of $555,345. Attachment A shows the sources of funding, and proposed uses, for the FY 2025 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 2025 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 2025 DRAFT Annual Action Plan. In addition to the proposed allocations listed below, Springfield is also proposing to allocate 20% of new entitlement funds toward Grant Planning and Administration, for a total of $111,069. 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 received $1.5 million in American Rescue Plan Act (ARPA) funds to put toward acquiring land for affordable housing. Given that these funds are more flexible than using CDBG funds for this same activity, the City has focused on using ARPA funds toward this strategy and has reallocated prior year CDBG funds away from this activity. Additional funds allocated through the FY 2025 HOME Allocation will help to address this strategy in Springfield. (see FY 2025 HOME Allocation)  Community Housing Development Organization (CHDO) Operating Support – (see FY 2025 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 Attachment 1 Page 4 of 7 Eugene-Springfield FY 2025 Annual Action Plan City of Springfield CDBG program 5 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 $260,974. Provide Down Payment Assistance for Home Ownership  Springfield Home Ownership Program - The City of Springfield is committed to supporting low-income homebuyers. In FY 2023, the City revamped 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. In FY 2025, the City is proposing to allocate an additional $100,000 in CDBG funds toward this program. 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. In FY 2024, Springfield updated its website to include information about removing discriminatory covenants from residential property, and directing the City Attorney to petition Lane County Circuit Court for the removal of discriminatory covenants from City-owned property. 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 is proposing to allocate 15% of new entitlement funds to the HSC for a total of $ 83,302 in FY 2025.  Non-profit capital facility improvements – In prior year CDBG Action Plans, the City allocated a total of $505,494 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. The City continues to work with Catholic Community Services toward completing this project, including wrapping up the HUD-required environmental review. The City has also allocated $225,000 toward Relief Nursery’s Attachment 1 Page 5 of 7 Eugene-Springfield FY 2025 Annual Action Plan City of Springfield CDBG program 6 project to acquire land in order to expand their existing service center. The City continues to work toward completing that HUD-required environmental review. Promote Economic Development  There are currently no FY2025 funds allocated toward this strategy. Make Strategic Investments to Improve Neighborhoods  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. There are no additional funds allocated toward this strategy. Attachment 1 Page 6 of 7 ATTACHMENT A CDBG REVENUES (estimated) TOTAL FUNDS FY 2025 Entitlement Funds (EN) $ 555,345 Other Funds • Carryforward from previous years • Program Income in FY24 $ 0 TOTAL $ 555,345 CDBG EXPENDITURES (estimated) Consolidated Plan Strategy Activity Amount (TOTAL) 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 1 Page 7 of 7