Westminster City Council
SUBJECT
Title
Adoption of Amendment No. 1 (Substantial) to the Fiscal Year 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
• Mayor and City Council Questions for Staff
• Public Comments
• Mayor and Council Member Discussion
• Council Action
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From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Michael Son, Housing Specialist
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RECOMMENDED ACTION
Recommendation
A. Approve the Amendment No. 1 (Substantial) to the Fiscal Year 2024/2025 Annual Action Plan; and
B. Authorize the City Manager to submit this amendment to the United States Department of Housing and Urban Development (HUD); and
C. Approve agreement with Interval House to administer the Westminster Tenant-Based Rental Assistance Program and authorize the City Manager to execute the agreement on the City’s behalf.
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BACKGROUND
Each year, the City prepares an Annual Action Plan in connection with the Five-Year Consolidated Plan which details how the City will spend HUD federal funds, specifically CDBG and HOME, for that given year. The Annual Action Plan has two principal purposes. First, it identifies the projects and programs to be undertaken during the upcoming fiscal year and also states the proposed objectives and outcomes to be achieved within the overall context of the Five-Year Consolidated Plan. Secondly, the Annual Action Plan acts as the City’s application process for federal formula grants, principally comprised of the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs.
HUD regulations allow for changes to be made to the Annual Action Plan should new projects arise throughout the year, if current projects require a budget adjustment, or if the City decides to cancel or not move forward with a project previously approved.
This public hearing seeks to amend the Fiscal Year 2024/2025 Annual Action Plan to add a new project to the Annual Action Plan - the Westminster Tenant-Based Rental Assistance Program - for implementation through June 30, 2025. The City is proposing to allocate $125,000 in HOME funding to the new program to assist at least nine households with children who are currently homeless or at risk of becoming homeless. To qualify for the program, eligible households must meet certain criteria: they must be at or below 60% of the area median income and must have last lived in Westminster, work in Westminster, or have children enrolled in the Westminster School District. Referrals for this assistance will be obtained from both the Family Resource Center and the Westminster School District. Once enrolled, tenants will undergo assessments to identify and address additional supportive services that may help in reducing their risk of homelessness or alleviating their current situation.
On August 1, 2024, the City issued a Notice of Funding Availability (NOFA) announcing $125,000 in HOME funds and $25,000 in Westminster Housing Authority funds for a tenant-based rental assistance program, effective through the end of the fiscal year on June 30, 2025. By the NOFA's deadline, Interval House was the sole proposer.
Interval House has a proven track record in Westminster, having been contracted by the City in 2020 to administer a tenant-based rental assistance (TBRA) program. This program included rapid rehousing, homelessness prevention, security deposit assistance, utility assistance, case management, and a wide range of supportive services. These efforts were focused on promoting housing stability for vulnerable households in Westminster at risk of or experiencing homelessness, utilizing both the HOME TBRA program and the Permanent Local Housing Allocation (PLHA) TBRA Program.
For Fiscal Year 2024/2025, Interval House proposes to provide time-limited tenant-based rental assistance-covering expenses such as security deposits, rent, and rent arrears-as well as a comprehensive range of supportive services. These services include case management, counseling, housing relocation and stabilization, legal assistance, educational support, employment services, financial counseling, childcare, and transportation. The goal is to promote long-term housing stability and self-sufficiency for low-income households at risk of or experiencing homelessness in the City of Westminster.
To ensure the program's success, Interval House will undertake several key activities:
• Conduct marketing and outreach to connect eligible households with the TBRA program.
• Maintain a waiting list for eligible households based on need.
• Perform initial intake to pre-qualify households.
• Collect necessary documentation, certify, and verify household income and eligibility.
• Assist with housing unit selection.
• Conduct housing quality standards (HQS) inspections of housing units.
• Communicate and coordinate with landlords to support tenant/landlord relations.
Interval House aims to provide these services to an estimated 9 homeless and/or at-risk households (approximately 22 individuals), with a targeted focus on households earning at or below 50% of the Area Median Income (AMI) over a nine-month period.
FISCAL IMPACT
There is no fiscal impact to the General Fund. However, approval of Amendment No. 1 (Substantial) to the Fiscal Year 2024/2025 Annual Action Plan will commit HOME funding in the amount of $125,000 and Westminster Housing Authority funds in the amount of $25,000 to Interval House for administration of the Westminster Tenant-Based Rental Assistance program.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Approval of Amendment No. 1 (Substantial) to the Fiscal Year 2024/2025 Annual Action Plan will allocate HOME funding to Interval House for the implementation of the Westminster Tenant-Based Rental Assistance Program. The program, which will run through June 30, 2025, aims to assist approximately 9 households with essential rental assistance to promote housing stability.
ATTACHMENTS
1. Amendment No. 1 to the Fiscal Year 2024/2025 Annual Action Plan
2. DRAFT 2024 Westminster and Interval House TBRA Agreement
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager