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HomeMy WebLinkAboutCommunity Development Block Grant (CDBG) Program and FY 2020-2021 Action PlanSTAFF REPORT CITY OF PALM DESERT CITY MANAGER'S OFFICE MEETING DATE: January 9, 2020 PREPARED BY: Christopher Gerry, Management Analyst REQUEST: Request to begin developing the Fiscal Year 2020-21 Action Plan, including the Community Development Block Grant Program. Recommendation By Minute Motion: 1. Open the public hearing and receive comments regarding the development of the Fiscal Year (FY) 2020-21 Action Plan, including the Community Development Block Grant (CDBG) Program; 2. Open the FY 2020-21 CDBG application process according to the recommended priorities, which includes focusing public services funds on fair housing services and Path of Life Ministries; concentrating public facilities and improvements funds on City and nonprofit organization projects located in Palm Desert; and retaining administrative funds for staffing costs. Backqround The U.S. Department of Housing and Urban Development (HUD) administers the CDBG Program to assist jurisdictions in addressing the needs of low and moderate -income people. As required in the City's Citizen Participation Plan, the City Council must hold a public hearing to receive comments regarding the development of the FY 2020-21 Action Plan, including the CDBG Program, and respective application process. CDBG funds are generally allocated toward the categories of public services, public facilities and improvements, and administration. Below describes the categories and recommended priorities. Public Services Public services include staffing and other operational costs for services to address the needs of low and moderate -income people. This category is restricted to 15 percent of the CDBG allocation. Based upon the City's prior CDBG allocation, 15 percent is approximately $60,000. City staff recommends 1) soliciting applications for fair housing services and, 2) partnering with Path of Life Ministries. In regard to fair housing services, the City is required to provide this activity as a recipient of CDBG funds. While fair housing services can be funded under administration, it is recommended to fund this activity under public services in order to preserve administrative funds. January 9, 2020 CDBG Program Page 2 of 3 In regard to Path of Life Ministries, City staff recommends partnering with this organization to lease a housing unit for homeless individuals living in Palm Desert. To explain, the City currently has an agreement with Riverside University Health System to provide two County staff members to conduct homeless street outreach and case management; ultimately, with the goal of reducing homelessness in Palm Desert. County staff has been successful in building relationships and providing case management to homeless individuals. City and County staff believe adding a discretionary housing unit for temporary shelter (leased by Path of Life Ministries) is valuable in reducing homelessness in Palm Desert. Conceptually, Path of Life Ministries manages the leased housing unit, and County staff has discretion on placement and provides case management. Public Facilities and Improvements Public facilities and improvements include construction projects to improve neighborhoods and community facilities to benefit low and moderate -income people. The City has historically allocated its CDBG funds to nonprofit organizations located throughout the Coachella Valley. This approach is common when a jurisdiction lacks "CDBG-eligible areas" (i.e., census blocks where 50 percent of the population makes less than 80 percent of the area median income). Jurisdictions with CDBG-eligible areas typically retain funds to construct improvements in the public right-of-way. Please note the City has two CDBG-eligible areas as of February 2019. These areas are identified in Attachment A. As a result of now having CDBG-eligible areas, City staff conducted a regional funding comparison of the other three federal entitlement jurisdictions in the Coachella Valley, including Palm Springs, Cathedral City, and Indio (Entitlement Jurisdictions). The purpose of this five-year comparison was to understand the Entitlement Jurisdictions' CDBG funding priorities for public facilities and improvements. As displayed below, jurisdictions (97 percent) usually retain CDBG funds for City or nonprofit organization projects located within their jurisdictional boundaries. Furthermore, most jurisdictions (84 percent) typically retain CDBG funds for City -managed construction projects. The dataset can be found in Attachment B. Entitlement Jurisdictions Citv of Palm Desert Total CDBG funds (previous five years) $ 6,033,973 $ 1,185,289 • Projects funded inside of jurisdictional boundary $ 885,840 $ 430,392 (nonprofits) • Projects funded outside of jurisdictional $ 80,777 $ 550,378 boundary (nonprofits) • Projects funded inside of jurisdictional boundary $ 5,067,356 $ 204,519 (City) City staff recommends concentrating public facilities and improvements funds on City and nonprofit organization projects located in Palm Desert. City staff also recommends proposing to construct neighborhood improvements (to be determined) within these CDBG-eligible areas as well. January 9, 2020 CDBG Program Page 3 of 3 Administration Administration includes staffing costs to administer the CDBG Program. This category is restricted to 20 percent of the CDBG allocation. Based upon the City's prior CDBG allocation, 20 percent is approximately $80,000. Fair housing services is the only other eligible activity to fund under administration; however, City staff recommends funding staffing costs due to the administrative burden associated with managing the CDBG Program. Conclusion In March 2020, the Outside Agency Funding Committee will review the draft CDBG Program budget, including subgrant applications. Subsequently, the Committee recommendations will be presented for City Council consideration in April 2020. Fiscal Analvsis There is no fiscal impact associated with this request. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW N/A N/A Robert W. Hargreaves Lauri Aylaian jet Moore City Attorney City Manager Director of Finance .1�b City Manager Lauri Aylaian: ATTACHMENTS: 1. CDBG-eligible areas 2. CDBG funding comparison (public facilities and improvements) ASSISTANT CITY MANAGER N/A Andy Firestine Assistant City Manager +•�r�fr�'t s t Or ALI jp moo A. ��,, � � � • -• • XI it " y r• Y �. 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C N P S V O Ov 00 V� O W rn i - ", O W--$ ol A W N V N O N 4~ O O CITY OF PALM DESERT NOTICE OF PUBLIC HEARING FISCAL YEAR 2020-21 ACTION PLAN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM NOTICE IS HEREBY GIVEN THAT a public hearing will be held by the City of Palm Desert (City) to receive public input and recommendations pursuant to the Housing and Community Development Act of 1974, as amended, regarding the development of the Fiscal Year (FY) 2020-21 Action Plan, which includes the Community Development Block Grant (CDBG) Program. The City will hold a public hearing on January 9, 2020, at 4:00 p.m. or thereabouts to accept public comment related to the Action Plan and related items stipulated herein. Anyone interested in participating in the development of the Action Plan is encouraged to attend the meeting or contact the designated City staff person. The City Council will also open the grant application process to consider proposals for CDBG Program funds and receive public comment relative to all items pursuant to the City's Citizen Participation Plan process. Eligible activities to receive funding must generally benefit very low, low, and moderate -income persons within the community. The hearing will be held in the Palm Desert Civic Center, Council Chambers, located at 73-510 Fred Waring Drive, Palm Desert. Applications are available through Management Analyst, Christopher Gerry, by calling (760) 776-6335, or emailing coerrvna.citvofoalmdesert.oro. Applications must be submitted to the City no later than 4:00 p.m. on Friday, February 21, 2020. RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA December 20, 2019