REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Ursula Luna-Reynosa, Director of Community Development
PREPARED BY: Charles Kovac, Housing Manager
Subject:
title
Public Hearing to consider acceptance of the Fiscal Year 2021-2022 Consolidated Annual Performance & Evaluation Report
body
Statement of Issue:
The U.S. Department of Housing and Urban Development (HUD) requires the City to conduct a Public Hearing to approve the Fiscal Year (FY) 2021-2022 Consolidated Annual Performance & Evaluation Report (CAPER) in accordance with Federal regulation 24 CFR 570.486(a)(5).
Financial Impact:
There is no fiscal impact to receive and file this document.
Recommended Action:
recommendation
A) Conduct the Public Hearing to hear comments and approve the FY 2021-2022 Consolidated Annual Performance and Evaluation Report for Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Federal funds; and,
B) Authorize the City Manager to transmit this report to HUD by September 28, 2022.
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Alternative Action(s):
Do not receive and file the report, and direct staff accordingly.
Analysis:
BACKGROUND/DISCUSSION
Annually, the City is required to submit a CAPER to HUD, which reports on program performance and accomplishments for the use of CDBG and HOME entitlement funds. In FY 2021-2022, the City received entitlement funds in the amount of $1,238,214 in CDBG and $618,233 for HOME. The City is required to conduct a public hearing to adopt the CAPER.
The purpose of the CAPER is threefold:
1. It provides HUD with necessary information for it to meet its statutory requirement to assess each grantee's ability to carry out relevant City programs in compliance with all applicable rules and regulations.
2. It provides information necessary for HUD's Annual Report to Congress, also statutorily mandated.
3. It provides the City an opportunity to describe its successes in revitalizing deteriorated neighborhoods and meeting objectives stipulated in its Five-Year Consolidated Plan.
To those ends, the attached CAPER has been prepared in accordance with Federal guidelines. The CAPER highlights the City's achievements during the implementation year of the HUD-funded CDBG and HOME Programs covering July 1, 2021, through June 30, 2022. Additionally, the CAPER reports the progress the City made in carrying out its strategic plan as part of the Five-Year Consolidated Plan and Annual Action Plan.
Every five years, the City prepares a Consolidated Plan describing the proposed use of CDBG, HOME, and other applicable Federal program funds. The Council-adopted Consolidated Plan covering 2020-2024 identifies the City's overall vision and strategy for addressing housing and non-housing community development needs in Huntington Beach. As a means to achieve the strategic goals outlined by the Consolidated Plan, the City prepares an Annual Action Plan that describes projects, programs, and activities that will address the priority needs of low- and moderate-income households through community development, economic development, housing, and public services during the specified year.
Public Service Accomplishments (CDBG)
HUD allows up to 15 percent of CDBG funds to be used for public service programs. In 2021-2022, public services activities were allowed to be funded for a total of $185,732. Public service programs are administered by City departments and social service agencies that assist youth, homeless, elderly, and disabled individuals.
For FY 2021-2022, public service program accomplishments included the following:
• Provided literacy services to 139 low-income adults to improve their ability to understand, speak, read, and write English
• Assisted 162 children and families with after-school drop-in recreation services focused on child development, parent education, and mental health
• Provided services to 442 at-risk older adults including care management, home delivered meals, and transportation
• Provided homeless services to 33 people; 10 as part of Cameron Lane Navigation Center related to the $52,737 in 2021-20022 CDBG funding, and 23 as part of the StandUp for Kids Street Outreach’s program
Capital Improvement Accomplishments (CDBG)
For FY 2021-2022, the City Council allocated $496,557 to CDBG capital projects. These funds helped accomplish the 1) completion of the ADA Curb Cuts in Maintenance Zone 5; 2) implementation of the City’s Housing Rehabilitation Program; and 3) maintaining the suitable living conditions within the existing housing stock through code enforcement compliance.
Tenant-Based Rental Assistance (HOME & CDBG)
The City continues to provide short and medium-term rental assistance targeting the homeless, those at risk of homelessness, seniors, veterans, and victims of domestic violence. Using HOME funds, the City allocated $661,410 in funds for FY 2021-2022 ($556,410 in HOME funds and $105,000 in CDBG funds) and was able to assist 22 households working with two operators (Families Forward and Mercy House) to run the program. Due to high rents and low vacancies, the number of individuals assisted in 2021-2022 was significantly lower than prior years. Therefore, approximately $391,000 in HOME funds was unspent and will be carried-over to 2022-2023 program year to be used on the recently formed Mobile Home TBRA Program.
Administration
HUD allows up to 20 percent of CDBG funds to be used for public service programs. For 2021-2022, a portion of the CDBG administration budget ($30,000) was used to fund fair housing services for the City. Overall, Fair Housing Foundation, the City’s selected fair housing provider, served 325 unduplicated individuals, conducted four walk-in clinics, five tenant and management/landlord informational workshops, and three fair housing informational booths at events within the City.
It is recommended that after conducting the public hearing, the Mayor and City Council accept the Consolidated Annual Performance and Evaluation Report, inclusive of public comments, and authorize the City Manager to execute all required documents for transmittal to HUD by September 28, 2022.
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. Draft Consolidated Annual Performance & Evaluation Report (CAPER) FY 2021-22