REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Jennifer Villasenor, Acting Director of Community Development
PREPARED BY: Charles Kovac, Housing Manager
Subject:
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Annual Community Development Block Grant and HOME Investment Partnerships Grant End-of-Year Progress Report to the U.S. Department of Housing and Urban Development
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Statement of Issue:
Each year, the City of Huntington Beach (City) is required to provide a report to the U.S. Department of Housing and Urban Development (HUD) on its performance in meeting the objectives of the approved Consolidated Plan for federal entitlement grant programs. This report, the Consolidated Annual Performance and Evaluation Report (CAPER), documents the City’s use of Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds for the recently completed Fiscal Year (FY 2022-23). The attached FY 2022-23 CAPER has been prepared in a format required by HUD in accordance with federal regulations at 24 CFR, Part 91 and must be submitted to HUD by September 28.
Financial Impact:
There is no financial impact as this is an informational report.
Recommended Action:
recommendation
A) Adopt the FY 2022-23 Consolidated Annual Performance and Evaluation Report for Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) federal entitlement grant funds; and,
B) Authorize the City Manager to transmit the CAPER to HUD by September 28, 2023.
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Alternative Action(s):
The CAPER is a summary report of the activities and accomplishments of the CDBG and HOME programs for the Fiscal Year that concluded on June 30, 2023. This is a HUD-mandated report that must be submitted by September 28, 2023 to ensure the City’s continued eligibility under these federal entitlement grant programs.
Analysis:
BACKGROUND/DISCUSSION
CDBG is the principal federal program providing local governments with grants to improve the physical, economic, and social conditions in their communities for low- and moderate-income residents. HOME is the principal federal program providing local governments with grants to expand the availability of affordable housing for low- and moderate-income residents.
The Consolidated Plan describes the City’s proposed use of CDBG and HOME funds for addressing housing and non-housing community development needs of low- and moderate-income residents during a five-year plan period. As a means to achieve the goals outlined in the Consolidated Plan, each year the City prepares an Annual Action Plan that outlines the projects, programs, and activities that will be implemented during the specified year. The current Consolidated Plan and Annual Action Plan are available for public review on the City’s website at huntingtonbeachca.gov/business/economic-development/cdbg. After the conclusion of each year, the City must prepare a CAPER that summarizes the expenditure of funds and accomplishments for that year. Each of these plans and reports are required to be prepared by the City and submitted to HUD to remain eligible for federal entitlement grant funds.
The draft FY 2022-23 CAPER (Attachment 1) has been prepared in a HUD-prescribed format containing the information required pursuant to federal regulations. Also pursuant to federal regulations, the CAPER has been made available to Huntington Beach residents for review and comment. A notice was published in The Wave on August 31, 2023 inviting the public to submit written comments concerning the CAPER or to express their views during at the City Council meeting. Following this public review period, the CAPER must be considered for approval by the City Council and then submitted to HUD by September 28, 2023.
In FY 2022-23, the City Council provided funding to four nonprofit organizations that delivered a range of services benefitting lower income Huntington Beach residents. Funds were also allocated to City programs for housing repairs and improvements, special code enforcement, and emergency rental assistance for lower income residents. The program accomplishments are summarized below and detailed in the attached CAPER.
Public Services Accomplishments (CDBG)
HUD allows up to 15 percent of CDBG funds to be used for public service programs. In FY 2022-23, the City Council allocated the maximum amount of $176,879 for public service programs administered by social service agencies and City departments that assisted senior, disabled, youth, and homeless individuals. Examples of public service program accomplishments during FY 2022-23 include the following:
• Care management services were provided to 370 frail, elderly, homebound, and at-risk seniors, including nutrition, home safety, mobility, social support, and emotional well-being.
• After school enrichment activities and healthy development programs were made available to 253 children.
• Homelessness prevention and assistance services were provided to 456 residents.
Capital Accomplishments (CDBG)
The City Council allocated $923,954 to CDBG capital projects. The following is a partial list of the program accomplishments:
• Ten housing units occupied by low- and moderate-income residents were rehabilitated.
• Two code enforcement officers detected, investigated, and enforced 1,795 violations of public health, safety, and/or welfare affecting lower income residents.
Tenant-Based Rental Assistance (HOME)
The City Council allocated $599,397 to the homelessness prevention Tenant Based Rental Assistance (TBRA) program. This program is administered by Families Forward and Mercy House, and 33 households were provided with emergency short-term rent and utility assistance. The number of assisted households fell just below the projected goal by four due primarily to challenges with high rents and low vacancies in the City’s residential rental market. Therefore, approximately $188,724 of unspent HOME funds will be carried-over to FY 2023-24.
In November 2022, the City Council approved the new Mobile Home TBRA Program and allocated $391,654 in HOME funds to assist lower income senior mobile home owners having difficulty paying increasing space rents. The Mobile Home TBRA Program launched in April 2023 and through June 30, 2023 has provided rental assistance to 23 households.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(4), government fiscal activities that do not result in a physical change in the environment and do not commit the lead agency to any specific project, do not constitute a project. Therefore, these activities are exempt in accordance with CEQA Guidelines Section 15060(c)(3).
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1. Consolidated Annual Performance & Evaluation Report (CAPER) FY 2022-23
2. PowerPoint presentation for September 19, 2023 City Council meeting