REQUEST FOR CITIZEN PARTICIPATION ADVISORY BOARD ACTION
SUBMITTED TO: Honorable Chair and Board Members
SUBMITTED BY: Charles Kovac, Housing Manager
Subject:
title
Conduct Public Hearing on Community Development and Housing Needs per the 2020-2024 Consolidated Plan
body
Executive Summary:
Each year the City of Huntington Beach (City) receives annual allocations of grant funding from the United States Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) program. The primary purpose of the CDBG program is to improve the quality of life for low- and moderate-income persons, households, and neighborhoods.
In accordance with the program policy as outlined in the Citizen Participation Plan, the Citizen Participation Advisory Board (CPAB or Board) serves in an advisory capacity to the City Council in the allocation of CDBG public services funds. As such, the Board reviews all applications for funding and makes recommendations for public services programs. In addition, the CPAB holds a public hearing to elicit the views and opinions of Huntington Beach residents regarding the City’s community development and housing needs, and review goals and priorities outlined in the 2020-2024 Consolidated Plan.
Financial Impact:
The City anticipates receiving approximately $1.2 million in CDBG funds from HUD, of which, approximately $176,879 will be available to community and non-profit organizations for public services programs and activities.
Recommended Action:
recommendation
A) Conduct Public Hearing on community development and housing needs.
B) Receive and file report.
end
Alternative Action(s):
As the public hearing is required by the Citizen Participation Plan, staff does not recommend an alternative action.
Analysis:
Background/Discussion
The City began receiving CDBG funds in 1986. Altogether, CDBG grant entitlement funds to the City over the years total more than $51 million. These funds have supported a wide variety of programs and activities that primarily benefit low- and moderate-income residents.
The City's investment of HUD grant resources is guided by the Consolidated Plan that is adopted by the City Council every five years. Each 2023-2024 application submitted for consideration by the Board, must address one of the Strategic Plan goals contained within the 2020-2024 Consolidated Plan. Staff verifies this as part of the threshold eligibility review prior to providing applications to the Board for evaluation. In evaluating applications for funding, HUD regulations require the following criteria to be considered: 1) level of need for the program or project in the community; 2) if there are neighborhoods or geographic areas of the City exhibiting a greater level of need than the City as a whole; 3) existing resources available to address the need; and 4) how the applicant organization is positioned to meet the need. The Board may also consider each applicant's capacity, experience, and previous performance when evaluating applications.
Pursuant to the Citizen Participation Plan, applications for CDBG public services programs are accepted from local nonprofit organizations, public organizations, and City departments. Public services programs are typically provided by nonprofits and address critical needs of the community for low- and moderate-income seniors, families, and individuals with disabilities. Per HUD regulations, public services activities are limited to 15 percent of the total CDBG grant award or approximately $176,879.
Funding Application and Evaluation Process
The City's application deadline for CDBG funding for the 2023 Program Year was December 15, 2022. In all, the City received seven (7) applications totaling $327,939 for CDBG public services funding. Housing staff has completed the process of reviewing all applications to determine eligibility under HUD program regulations. All eligible applications will be submitted to the CPAB prior to or at the January 19 CPAB meeting, for consideration at two public meetings, which are scheduled to occur on February 2 and March 7. At the first meeting, the Board will hear oral presentations from each applicant and have an opportunity to ask questions about the programs and projects requesting funds. Subsequent to the presentations, the Board will deliberate and determine specific CDBG public services funding recommendations to the City Council. As an alternative to having deliberations on February 2, the Board can hear the applicant presentations on February 2, and then schedule a meeting for February 16, 2023 to make recommendations to the City Council. At the second meeting, the Board and City Council will hold a joint study session on March 7 to review the CPAB’s proposed funding recommendations prior to the City Council considering approval of the funding recommendations at its April 18 meeting.
The applications will be evaluated using the "majority rules" method. Under this process, each Board member may make a recommendation to fund an application for a certain dollar amount. lf the majority of the CPAB votes to fund an application, that application will be eligible. For applications receiving a majority recommendation to fund, the total CDBG dollar amount may not exceed the total of $176,879. So the Board will have to agree on all adjustments by a majority.
Administration of CDBG grants involves compliance with extensive federal recordkeeping and monitoring requirements by both the City and the organizations funded by the City. To most effectively use funds, staff recommends a minimum funding level of $10,000 for each public services program.
Public Participation
The City is required to gather community input to identify and prioritize community needs as well as engaging the public in understanding the process of deciding how best to use CDBG public services funds. Staff has disseminated information about the CDBG public services programs broadly throughout the community to ensure that the general public is also informed and able to participate. Staff provides information about the CDBG funding on the City's website, publishes all required notices of available funding and public hearings, and conducts technical assistance meetings as requested on the CDBG program prior to the start of the application process.
The Notice of Funding Availability for CDBG public services program was issued on November 3, 2O22 (CPAB Attachment 1), and applications were due on Thursday, December 15, 2022
The following schedule outlines the next steps to complete the annual CDBG public services funding allocation process. This schedule will allow the Board and the City Council time to review all eligible applications and carefully consider all public input during the process:
February 2, 2023: Board hears oral presentations from applicants and determines
funding recommendations.
February 16, 2023: Board finalizes funding recommendations for the City Council (IF
MEETING NEEDED).
March 7, 2023: City Council and CPAB joint study session meeting.
April 18, 2023: City Council considers CDBG public services funding
recommendations to be incorporated in the 2023-2024 Annual Action
PIan that serves as the application to HUD for grant funding.
Mav 12, 2023: 2023-2024 Annual Action Plan due to HUD.
Julv 1, 2023: 2023 Program Year begins.
Strategic Plan Goal:
Community Engagement
Attachment(s):
1. 2023-2024 CDBG Public Services Notice of Funding Availability