REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Charles G. Kovac, Housing Manager
Subject:
title
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 2020-2024 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 2023-24). The attached FY 2023-24 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 30.
Financial Impact:
There is no financial impact.
Recommended Action:
recommendation
A) Adopt the FY 2023-24 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 Interim City Manager to transmit the CAPER to HUD by September 30, 2024.
end
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, 2024. This is a HUD-mandated report that must be submitted by September 30 to ensure the City’s continued eligibility under these federal entitlement grant programs. Staff does not recommend any alternatives to submitting the CAPER.
Analysis:
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 2020-2024 Consolidated Plan describes the City’s proposed use of CDBG and HOME funds to address housing and non-housing community development needs of low- and moderate-income residents during the five-year plan period. 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. The current Consolidated Plan and Annual Action Plan are available for public review on the City’s website at https://www.huntingtonbeachca.gov/cdbg.
After the conclusion of each year, the City must prepare a CAPER summarizing the expenditure of funds and the accomplishments for that year. These plans and reports are required to be prepared and submitted to HUD to remain eligible for federal entitlement grant funds.
The draft FY 2023-24 CAPER (Attachment 1) has been prepared in a HUD-prescribed format containing the required information. Additionally, per 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 29, 2024, inviting the public to submit written comments or express their views at the City Council meeting. Following this public review period, the CAPER must be approved by the City Council and submitted to HUD by September 30.
In FY 2023-24, 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 summarized below represent key highlights of the City's CDBG and HOME programs. For a comprehensive overview of all accomplishments for the year, please refer to the attached CAPER.
Public Services Accomplishments (CDBG)
HUD allows up to 15 percent of annual CDBG funds to be used for public service programs. In FY 2023-24, the City Council allocated the maximum amount of $175,750 for public service programs administered by social service agencies and City departments that assisted youth and homeless individuals. Examples of public service program accomplishments during FY 2023-24 include:
• After-school enrichment activities and healthy development programs for 217 children.
• Homelessness prevention and assistance services to 479 residents.
Capital Accomplishments (CDBG)
The City Council allocated $1,150,279 to CDBG capital projects to assist lower-income households. The program accomplishments include:
• 14 housing units occupied by low- and moderate-income residents were rehabilitated.
• Two code enforcement officers detected, investigated, and enforced 1,053 violations of public health, safety, and/or welfare affecting lower-income residents.
• Central Library Restrooms were improved to create ADA-compliant restrooms, improving accessibility for seniors and individuals with disabilities.
• Infrastructure improvements in Maintenance Zone 1 resulted in the installation of 28 curbs and ramps at various locations, providing access to over 2,500 people.
Tenant-Based Rental Assistance (HOME)
The City Council allocated $200,000 to the homelessness prevention Tenant-Based Rental Assistance (TBRA) program. Families Forward administers this program, and 17 households were provided with emergency short-term rent and utility assistance, exceeding the goal of 15 households.
Additionally, Mercy House, using 2022-23 HOME carry-over funds, assisted six households with emergency short-term rent and utility assistance.
In November 2022, the City Council approved the new Mobile Home TBRA Program, and in FY 2023-24, allocated $546,277 in HOME funds to assist lower-income senior mobile homeowners struggling with increasing space rents. The program launched in April 2023, and through June 30, 2024, had provided rental assistance to 59 households, 36 of which were assisted in 2023-24 (exceeding the goal of 30 for the program year).
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15378(b)(4) (governmental fiscal activities that do not result in a direct or reasonably foreseeable indirect physical change in the environment and do not commit the lead agency to any specific project) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. Consolidated Annual Performance & Evaluation Report (CAPER) FY 2023-24
2. PowerPoint Presentation