Westminster City Council
SUBJECT
Title
Adoption of Final FY 2024-2025 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships Act (HOME) Program Federal Funds.
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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
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From: Catherine Lin, Community Development Director
Requested by: Administration
Prepared by: Michael Son, Housing Specialist
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RECOMMENDED ACTION
Recommendation
A. Approve the Final FY 2024-2025 Annual Action Plan; and
B. Authorize the City Manager to execute the documents required for submission of CDBG and HOME funding approval to the United States Department of Housing and Urban Development (HUD) for review and approval; and
C. Authorize staff to make changes to funding allocations once the final 2024 CDBG and HOME allocations are announced by HUD.
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BACKGROUND
Each year, the City prepares an Annual Action Plan which details how the City will spend United States Department of Housing and Urban Development (HUD) federal funds in connection with the Five-Year Consolidated Plan (Consolidated Plan), specifically CDBG and HOME funds, for that given year. The Annual Action Plan has two principal purposes:
• The Annual Action Plan identifies the projects and programs to be undertaken during the upcoming fiscal year and the proposed objectives and outcomes to be achieved within the overall context of the Consolidated Plan; and
• The Annual Action Plan acts as the City’s application process for federal formula grants, principally comprised as the CDBG and HOME programs.
For the City Council’s consideration, an estimated total of $1,267,158 in CDBG funds and $986,283 in HOME funds will be allocated to the proposed activities further detailed in this staff report.
CDBG Funding. For FY 2024-2025, the City of Westminster will have an estimated total of $1,267,158 in CDBG funds. This total amount is comprised of an estimated $979,000 in FY 2024-2025 CDBG entitlement funds and $288,158 in prior year unallocated CDBG funds carried forward. Carryover funds are due to project savings from prior year subrecipient and capital improvement projects. CDBG funds are used for local community development activities that provide decent housing, a suitable living environment, or are used to expand economic opportunities, principally for low- and moderate-income persons.
As of the writing of this staff report, HUD has not announced CDBG allocation amounts for FY 2024-2025. Once the allocation amount is known, administration and public service allocations will be proportionally increased or decreased from the estimated funding levels to match the actual allocation. The remaining differential between the actual CDBG budget and the estimated budget described in the Annual Action Plan will be applied to the FY 2024-2025 Street Improvement Project.
Proposed CDBG Activities. In accordance with priorities established in the City’s Five-Year Consolidated Plan, below is a summary of projects and funding proposed for approval.
• Neighborhood Pride Code Enforcement Program, $194,424: The Neighborhood Pride Code Enforcement Program’s purpose is to ameliorate deteriorating conditions in single- and multi-family residential properties in a specific target area. The objective is also to maintain and improve the quality of the community by identifying substandard housing and ancillary commercial conditions and then correcting violations of all local and Federal codes, including municipal, property maintenance, housing, and zoning codes. It also strives to promote and maintain a safe and desirable living and working environment for designated low and moderate-income neighborhoods.
• Senior Outreach Center, $43,730: The Senior Outreach Program assists seniors (>62 years of age) and the disabled population needing support services to allow them to live independently and remain in their own home. The Program provides seniors and/or their adult children with information, referrals, services, and programs to provide for their essential needs to prevent early placement in a board and care or convalescent home. An added key element to this program are transportation services and supplemental lunches.
• Home Delivered Meals Program, $27,181: The Home Delivered Meals Program provides three meals per day, five days per week to frail elderly participants aged 62 or over in the City of Westminster. In addition to the meals, all participants receive case management services and have access to in-home safety services. The program benefits participants by assisting with basic food and nutritional needs which in turn improves overall health.
• Family Resource Center, $50,586: The Westminster Family Resource Center is a family-friendly, community-based site that offers a comprehensive range of services and support systems to families. It is designed to be a one-stop shop where services provided are offered in partnership with private and public agencies working together to enhance each family’s capacity to become self-sufficient.
• Project S.H.U.E., $15,000: Project S.H.U.E. (Safety, Health, Understanding, and Education) is an intergenerational afterschool program that is designed to provide underserved children, first and second grade, a safe afterschool environment at the Westminster Senior Center. With the support of volunteer seniors, S.H.U.E. staff will create a structured setting that focuses on learning while fostering healthy social development of each individual child. The environment this program creates helps to reduce the risk of negative peer pressure, gang/drug involvement, and low academic achievement.
• Summer Youth Program, $10,346: The Summer Youth Program is an eight-week summer program that provides summer recreational activities to Westminster school-aged children. To meet the low-income eligibility requirement, invitations will be extended to Family Resource Center families and Project SHUE participants. The hub of the Summer Youth Program will be at the Community Services Center, combined with visits to the Police Department and Orange County Public Library.
• Street Improvements, $730,091: The Street Improvement Project for FY 2024/25 involves the resurfacing of eight residential street segments: Purdy Street from Bolsa Avenue and Elvira Avenue, Coronado Street from Whitley Street to Lido Avenue, Natoma Avenue from Coronado Street to Summerwood Lane, Lido Avenue from Coronado Street to Balboa Street, Cherry Street from Westminster Boulevard to Wyoming Street, Alley 8 from Pine Street to Cedar Street, Pine street from Westminster Boulevard to Wyoming Street, and Chestnut Street from Fenwick Lane to Bolsa Avenue. The improvements include removing and reconstructing damaged concrete curbs, gutters, cross gutters, sidewalk, driveway approaches, and other related concrete improvements; grinding existing pavement and constructing new asphalt concrete pavement; adjusting sewer manholes and water/hydrant valves to finished grade; installing traffic signal loops and new striping to match with existing configuration.
• CDBG Program Administration, $175,800: The City will conduct the following administration/planning activities: (1) General Administration of the overall CDBG Program, including preparation of budget, applications, certifications, agreements and CDBG Service Areas, (2) Coordination of all CDBG-funded capital improvement projects, (3) Coordination of the Public Service Subrecipients, (4) Monitoring of all CDBG projects/programs to ensure compliance with federal regulations, (5) Preparation of the Annual Action Plan, and (6) Preparation of the Consolidated Annual Performance and Evaluation Report (CAPER).
• Fair Housing Services, $20,000: The Fair Housing Services Program provides fair housing education, counseling, and enforcement services to Westminster residents. This program helps the City to comply with HUD’s regulatory requirements to affirmatively further fair housing and includes counseling on landlord/tenant law and other aspects of housing.
HOME Funding. The City of Westminster will have approximately $986,283 in HOME Program funds comprised of this coming year’s estimated allocation of $457,240, and an estimated carryover balance of $529,043. HOME funds are used for building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing rental assistance to low-income households.
The HOME entitlement for FY 2024-2025 is still unknown at this time. HUD plans to announce allocations in mid-May. The HOME activity budget shown below will be adjusted accordingly when the HOME allocation is known.
Proposed HOME Activities. City staff recommends the following activities that are consistent with priorities outlined in the City’s Five-Year Consolidated Plan and that fulfill the purpose of the HOME program to create affordable housing for low-income households:
• HOME Program Administration, $45,724: The City may use up to 10 percent of the HOME allocation for the overall administration of the HOME Program. The City will use HOME funds to ensure the overall development, management, coordination (including coordination with Community Housing Development Organizations), and monitoring of all HOME-funded projects/programs to ensure compliance with federal regulations of the HOME program.
• Unallocated HOME Funds, $940,559: The City may use unallocated HOME funds on an affordable housing project in conjunction with a local Community Housing Development Organization (CHDO). The City will extend gap financing to acquire and support the construction and/or rehabilitation of affordable transitional or permanent rental housing. Additionally, the City may use unallocated HOME funds for a Tenant-Based Rental Assistance Program (TBRA Program) in partnership with a non-profit organization to administer the program. The TBRA Program may assist lower-income households experiencing or at risk of experiencing homelessness achieve self-sustainability via rental assistance and supportive services.
FISCAL IMPACT
Approval of the FY 2024-2025 Annual Action Plan will provide CDBG and HOME funds to the proposed activities for the year covering July 1, 2024 through June 30, 2025 and will be included in the FY 2024-2025 Budget.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
This concludes the mandatory 30-day public comment period of the draft FY 2024-2025 Annual Action Plan and is the final step in the process of securing the City’s annual allocation of CDBG and HOME funds. Attached to the staff report is the final FY 2024-2025 Annual Action Plan for City Council’s consideration and approval. The Plan must be submitted to HUD by the deadline of May 15, 2024.
ATTACHMENTS
1. Final FY 2024-2025 Annual Action Plan (AAP)
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager