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
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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