Westminster City Council
SUBJECT
Title
Public Hearing - Consideration of the City of Westminster’s Housing and Community Development Needs in Preparation of the Fiscal Year 2024-2025 Annual Action Plan.
End
publichearing
• Staff Report
• Comments or Presentation from Applicant
• Comments from Appellant (If Applicable)
• Mayor and City Council Questions for Staff
• Public Comments
• Mayor and Council Member Discussion
• Council Action
End
From: Catherine Lin, Community Development Director
Requested by: Administration
Prepared by: Catherine Lin, Community Development Director; Michael Son, Housing Specialist
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RECOMMENDED ACTION
Receive and file comments regarding the City’s housing and community development needs in preparation of the Fiscal Year 2024-2025 Annual Action Plan.
Recommendation
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BACKGROUND
Each year, the City prepares an Annual Action Plan (Action Plan) that describes how the City will allocate the federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Act (HOME) funds expected to be received from the U.S. Department of Housing and Urban Development (HUD). An integral part of the Plan is an assessment of the City’s housing and community development needs. The City’s current Five-Year Consolidated Plan (Con Plan), covering Fiscal Years 2020-2024, adopted by City Council on May 13, 2020 serves as the strategic framework that identifies the housing and community development goals for addressing those needs. The Con Plan sets the vision for appropriating federal resources to activities related to housing, homelessness, community development, and special needs in the Westminster community that are consistent with CDBG and HOME Program regulations. In establishing the five-year priorities for the use of the City’s CDBG and HOME funds, several factors were considered including:
• Identifying those households most in need of housing and community development assistance, as determined through the Consolidated Plan needs assessment, consultation, and public participation process;
• Determining which activities would best meet the needs of those identified households; and
• Defining the extent to which other non-federal resources and programs are available to address those needs.
In accordance with federal regulations, this is the first of two public hearings that will be conducted during the Fiscal Year 2024-2025 Annual Action Plan process. This hearing serves to solicit further public comment on Westminster’s housing and community development needs and the use of CDBG and HOME funds to address those needs. Specifically, this public hearing is to encourage the residents to express opinions in connection with housing and homeless housing needs, as well as community needs in the areas of public services, public facilities, public infrastructure, and economic development. The Mayor and City Council are also encouraged to provide input on these needs.
It is important to remember that during preparation of the Con Plan, the City distributed a Community Needs Survey to local agencies, followed by a consultation workshop with housing, homeless, and social service providers, to solicit suggestions on key housing and community development needs in the City; as well as to identify any gaps in services. The City also held a community workshop to garner input from residents on community needs. Additionally, the City conducted a Community Development Needs Survey to establish priority needs and goals for use of CDBG and HOME monies throughout the Fiscal Year 2020-2024 time period. As a part of this process, HUD requires that cities hold an annual public hearing to reassess the needs or priorities on how CDBG and HOME money are being spent. This public hearing satisfies that requirement.
Community Development and Housing Priorities and Goals Established in the 2020-2024 Consolidated Plan
The City’s 2020-2024 Consolidated Plan identified the following community development and housing priorities, goals, and implementing programs which serve as the basis for future project development and funding.
Priority Housing Needs
Ø Goal: Preserve existing and create new affordable housing.
• Acquisition/Rehabilitation/New Construction Affordable Housing Projects
• Westminster Tenant Based Rental Assistance Program
Ø Goal: Sustain and strengthen neighborhoods.
• Neighborhood Pride Code Enforcement Program
• Multi-Family Rental Rehabilitation Loan Program
• Other Housing Rehabilitation Grant and Loan Programs
Priority Community Services
Ø Goal: Support agencies that assist special needs populations.
• Senior Outreach Center
• Meals on Wheels Home Delivered Meals Program
• Other Special Needs Programs
Ø Goal: Provide needed community services to low- and moderate-income persons.
• Westminster Family Resource Center Program
• Community Services Department Summer Youth Program
• Project S.H.U.E. Program
• Other Community Services
Priority Parks and Recreational Facilities
Ø Goal: Preserve existing and create new community facilities.
• Various Community, Park, and Facility Improvement Projects
Priority Infrastructure Improvements
Ø Goal: Provide needed infrastructure improvements in low to moderate income neighborhoods.
• Various Street Improvement Projects
Other Priority Community Development Needs
Ø Goal: Planning for housing and community development.
• CDBG Program Administration
• HOME Program Administration
• Fair Housing Services
Attached to this staff report is a chart outlining the CDBG and HOME Funding Allocations for Fiscal Year 2023-2024 and preliminary CDBG and HOME Funding Requests for Fiscal Year 2024-2025 (Attachment No. 1). It is important to note that requests for CDBG funding will often exceed the amount of funds available. The comments received during this public hearing will help prioritize funding for eligible activities for Fiscal Year 2024-2025.
Community Development Block Grant (CDBG) Funding
The CDBG program provides annual grants on a formula basis to local governments to implement a wide variety of community development and housing activities as set forth in the CDBG regulations. The overriding purpose of the CDBG program is to support “bricks and mortar” activities primarily to benefit low- and moderate- income persons (e.g., acquisition, rehabilitation and preservation, and public improvements and facilities). For Fiscal Year 2024-2025, the City of Westminster estimates that it will receive a similar amount to the prior fiscal year, which is approximately $978,000 in federal CDBG funds.
HOME Investment Partnership Act (HOME) Funding
The HOME Program is the largest Federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are provided as formula grants to be used for home purchase, repairing rental or ownership properties, site acquisition, demolition of dilapidated housing to make way for HOME-assisted development, and payment of relocation expenses. In Fiscal Year 2024-2025, the City of Westminster estimates receiving approximately $457,000 in federal HOME funds.
Fiscal Year 2024-2025 Annual Action Plan Schedule
The distribution of CDBG and HOME funds to city departments and non-profit organizations, occurs each year starting in February using the following three-step process.
Step 1: (February 28, 2024) 1st Public Hearing - Receive comments concerning Westminster’s community development and housing needs.
Step 2: (March 27, 2024) Regular Business - Submission of Draft FY 2024/2025 Annual Action Plan to Council and open 30-Day Public Review Period of FY 2024/2025 Draft Action Plan.
Step 3: (May 8, 2024) 2nd Public Hearing - Close 30-Day Public Review Period of FY 2024-2025 Draft Action Plan, Council adoption of Annual Action Plan and approve all CDBG/HOME Funding Requests.
FISCAL IMPACT
There is no fiscal impact to the General Fund associated with this public hearing. It is important to note HUD has not published CDBG & HOME allocations. Therefore, allocations in Attachment No. 2 are estimated amounts the City is expected to receive. Notification of final CDBG & HOME allocations are expected to be in late February or March.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
This is the first of two public hearings and any comments received will be considered during preparation of the City’s Fiscal Year 2024-2025 Annual Action Plan. The Annual Action Plan provides a summary of actions, activities and resources to address priority needs and goals identified by the 2020-2024 Consolidated Plan. The Annual Action Plan is a required document to be submitted to HUD for review and approval to receive the City’s Fiscal Year 2024-2025 CDBG and HOME funding allocations.
ATTACHMENTS
1. Notice of Public Hearing AAP 2024-25
2. Fiscal Year 2024-25 CDBG & HOME Funding Requests
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager