CC - Item 6A - 2020-2024 Five-Year Consolidated Plan U
E M F
9 ROSEMEAD CITY COUNCIL
STAFF REPORT
CIVIC PRIDE
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AtoRpORATED Ace
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER jj SLA .
DATE: SEPTEMBER 10, 2019
SUBJECT: 2020-2024 FIVE-YEAR CONSOLIDATED PLAN
I
SUMMARY
The City of Rosemead is a federal entitlement grant recipient of Community Development Block
Grant ("CDBG") and HOME investment Partnership funds ("HOME") from the U.S.
Department of Housing and Urban Development ("HUD"). As part of the process to receive
funding,the City must undertake development of a Consolidated Plan every five (5) years and an
Annual Action Plan completed each year. The City's current Consolidated Plan is set to expire
on June 30, 2020. Staff, with assistance from Michael Baker International ("MBI"), is preparing
the next Consolidated Plan (2020-2024) and is providing the Council a progress report as well as
seeking Council input on programing priorities.
STAFF RECOMMENDATION
•
Staff recommends that the City Council receive and file this report, and provide input on
community needs,potential programs, and projects for the 2020-2024 Consolidated Plan.
DISCUSSION
The Five-Year Consolidated Plan is a strategic planning document that includes how future
CDBG and HOME funds will be spent within the document cycle period. As part of the
Consolidated Plan process, an "Analysis of Impediments to Fair Housing" ("AI") is prepared
with a goal to determine means and opportunities for the community to address the following
topics:
• Significant disparities in housing needs;
• Replace segregated living patters with truly integrated and balanced living environments;
• Combat discrimination;
• Transform racially and ethnically concentrated areas of poverty into areas of
opportunities; and
• Maintain compliance with civil rights and fair housing laws.
AGENDA ITEM NO. 6.A
City Council Meeting
September 10,2019
Page 4 of 4
It is estimated that during the next Consolidated Plan cycle (2020-2024), Rosemead will receive
from HUD approximately $3.5M in CDBG funds and approximately $1.5M in HOME funds.
Historically, the City has used CDBG funds for residential grants (e.g., handyman, emergency,
rebates, lead/asbestos remediation), Code Enforcement, and social services (Fair Housing,
Family Promise, Family Counseling, Senior Nutrition, etc.). In 2018, the use of CDBG funds
were expanded to include the Commercial Facade Improvement Program, Summer Youth
Employment, and Garvey Park Bathroom renovation. HOME funds have historically been used
for Owner-Occupied Residential Rehabilitation Loans, First Time Home Buyer, and affordable
housing production (CHDO). In 2018, the affordable housing funding was increased for a
potential affordable veteran's housing project.
Currently, MBI has completed the first portion of the Citizen Participation Outreach task by
interviewing local and regional stakeholders. MBI will continue the Citizen Participation efforts
by conducting a community survey, seeking Council's feedback, and holding future public
meetings/hearings. The community input is focused on the following salient topics:
1. What are the changes you see with the needs of your community? What should be the
top priorities in the next 2-3 years?
2. What are the infrastructure projects you feel CDBG funds should be spent on?
3. What do you feel are the most common/pressing housing problems? How do you feel we
can overcome these problems?
4. Do you feel there is local support for the development of affordable housing? If not,
why?
Staff is also seeking Council's consideration of the HUD Section 108 Loan Program. In
summary, Section 108 Loan Program is in which Rosemead may borrow, "....low-cost, long-
term federally guarantee financing for housing, economic development, and infrastructure
projects or loan funds. " The loan would be secured by future CDBG allocation from HUD to
the City. According to HUD, the current Rosemead borrowing authority is $3,733,315. Staff
believes that HUD Section 108 Loan Program could be a funding source for a potential
affordable veteran's housing project.
FISCAL IMPACT—None at this time.
STRATEGIC PLAN IMPACT—Preparation and adoption of the 2020-2024 Consolidated Plan
is required in order to continue receiving HUD's CDBG and HOME funds. As such, the 2020-
2024 Consolidated Plan is consistent with the Strategic Plan's key organizational goal of,
City Council Meeting
September 10,2019
Page 4 of 4
ensuring the city's continued financial viability by actively pursuing quality economic
development.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
4116. OF
Ben Kim, Ass'rr ant City Manager
Attachment A: PowerPoint Presentation
Attachment B: Summary of HUD Section 108 Loan Program
Attachment C: Social Service Stakeholder Interview Summary
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Attachment A
PowerPoint Presentation
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City of Rosemead
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SEPTEMBER 10, 2019
Preparation of the 2020-2024 Five-Year Consolidated Plan
A strategic plan describing how future CDBG and HOME funds will be spent
Preparation of an Analysis of Impediments to Fair Housing
Provide ways and opportunities for the community to:
® Address significant disparities in housing needs;
13 Replace segregated living patterns with truly integrated and balanced living environments
® Combat discrimination;
El Transform racially and ethnically concentrated areas of poverty into areas of opportunities; and
el Maintain compliance with civil rights and fair housing laws.
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Future Allocations
The City of Rosemead will receive approximately $5 Million in funding over the
next five years
■ CDBG : $3.5 Million
® HOME: $1.5 Million
OSE E 3
Citizen Participation
•Stakeholder interviews
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Survey � �
• Community
• Public Meetings and Hearings
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Plan DevelopmentTimeline
August/November — Data Gathering/Community Engagement
December — Initial draft of Consolidated Plans due to City
January — Final draft due to City
February — Council Review and Public Meeting
March — 30 Day Public Comment Period
April — Council Approvals and Public Meeting
MAY 15 —HUD Submission
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CommunityInput
1. What are the changes you see with the needs of your community? What so
you feel should be your top priorities in the next 2-3 years?
2. What are the infrastructure projects you feel CDBG funds should be spent on?
Examples: Significant infrastructure or road improvements, social service needs,
homelessness solutions, education.
3. What do you feel are the most common/pressing housing problems? How do
you feel we can overcome these problems?
4. Do you feel there is local support for the development of affordable housing?
If not, why?
Section 108 Loan
City of Rosemead — Section 108 Loan Borrowing Capacity
._---_--.- __-- --•-- --`--- if �a.`. ----.- ' -•- - ,-.-_ i -_.- -- -_,_ Ir_.._ ._ "-- -___ - .__ _,i. __._.. - __V..-----'------ ----
• FY19Current/Prior I
i 5X CDBG Available 108 Bor�rowi.ng
Grantee CDBG Award G
: Section 108 ��
i :Allocation �� - Authority
CA Rosemead $746,663No
$3,733,315 $3,733,315
Source:HUD Exchange,•4-8-2019,
Section 108 offers state and local governments the ability to access low-cost, long-term
federally guaranteed financing for housing, economic development, and infrastructure
projects or loan funds. These borrowing capacity calculations are based on the FY 2019 CDBG
grant awards as well as grantees' outstanding Section 108 guaranteed loans and
commitments as of April 2019.
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•
Thank You
Questions ? Contact
Ben Kim, Assistant City Manager
(626) 569-2169
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Attachment B
Summary of HUD Section 108 Loan Program
HUD - Section 108 Loan Guarantee Program
City of Rosemead Section 108 Loan Borrowing Capacity
Grantee FY19 5X CDBG Current/Prior Available 108
CDBG Award Allocation Section 108 Borrowing Authority
CA Rosemead $746,663 $3,733,315 No $3,733,315
Source:HUD Exchange,4-8-2019
Section 108 Loan Eligibility Requirements
Section 108 offers state and local governments the ability to access low-cost, long-term federally
guaranteed financing for housing, economic development, and infrastructure projects or loan funds.
These borrowing capacity calculations are based on the FY 2019 CDBG grant awards as well as
grantees' outstanding Section 108 guaranteed loans and commitments as of April 2019.
Eligible Applicants (24 CFR 570.702)
Eligible applicants include the following public entities:
• States, CDBG entitlement recipients including metropolitan cities and urban counties
Eligible Section 108 Projects (24 CFR 570.703)
For purposes of determining eligibility,the CDBG rules and requirements also apply.All projects and
activities must either principally benefit low- and moderate-income persons, aid in the elimination or
prevention of slums and blight or meet urgent needs of the community.
Activities eligible under CDBG include:
• Acquisition of real property
• Rehabilitation of publicly owned real property
• Housing rehabilitation eligible under CDBG
• Construction, reconstruction, or installation of public facilities (including street, sidewalk, and
other site improvements)
• Related relocation, clearance, and site improvements
• Payment of interest on the guaranteed loan and issuance costs of public offerings
• Debt service reserves
• Finance fees
• Public works and site improvements in colonias (low-income unincorporated blighted areas located
along the Mexico/US border,informal substandard housing)
• In limited circumstances, housing construction as part of community economic development
Financing Infrastructure with Section 108 Loans
Section 108 loans may be used to finance the construction, reconstruction, or installation of public
facilities including street, sidewalk, and other site improvements that are part of the overall project.
The funds can also be used for related relocation, clearance or site improvements.
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Attachment C
Social Service Stakeholder Interview Summary
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Stakeholder Summary August 2019
City of Rosemead
IocI.i .Small town Ann•rit.1
Social service stakeholder interview meetings were conducted in July 2019 at the Garvey
Community center as well as individual sites with the following agencies:
• West San Gabriel Valley Boys and Girls Club • Rosemead School District
• Garvey Community Center • LA County Public Health Department
• Family Promise • Salvation Army
• LA County Public Health Department • Fair Housing Rights Center
• LA Development Authority • Family Counseling Services
• Los Angeles Center for Alcohol and Drug Abuse
STAKEHOLDER OUTREACH MAJOR THEMES: ISSUES AND NEEDS
- Supportive housing for those near homeless.
- More affordable housing units for low and
extremely low income. The cost of a single
family home is not relatable to the salaries of
low and moderate income families.
- More available units. When housing is scarce,
discrimination against tenants increases. There
is an extreme shortage of affordable units.
PRIORITY HOUSING NEEDS Voucher recipients can not find homes.
- Smaller two bedroom homes and single
occupancy units.
- Lower construction and labor costs.
- Landlords willing to accept housing choice
vouchers. Landlord education on homeless
issues, rental contracts, eviction processes,
criminal activity awareness, and rental
assistance resources.
- Expand local housing agencies' capacity house
more families, rehab existing homes and build
new homes.
- Encourage a "Housing First Model" during a
housing placement process by providing wrap
around services, broadband access and
technology literacy. Create a strategy for long-
term placement.
- Fully utilize or expand agencies that offer
housing placement services.
- Fund "after placement" entry services that
POTENTIAL SOLUTIONS TO HOUSING PROBLEMS provide groceries, furniture, small scale kitchen
utensils and equipment.
- Housing agencies can partner with the City to
create an efficient land development approval
process.
- Update local housing elements to include
policies for: affordable housing in new
development; promote and support the
development of short-term living spaces that
can accommodate individuals and groups:
- Support building conversions for short-term or
transitional housing.
RjIT1ITI Stakeholder Summary August 2019
City of Rosemead
imfar',.Small linen Atm•ria.1
- Educate the community on what homelessness
is and create advocacy for local and regional
programs.
- Family incomes are not keeping up with housing
costs.
TOP FAMILY ISSUES - Low and moderate income parents are strapped
for time and cannot attend children's functions
and school programs.
- Workforce development and skills training.
- Increased number of service providers and
operational money.
- Assistance getting children safely to school if
parents are working.
PRIORITY FAMILY SERVICES - Resource guide for families needing assistance.
i.e. rental assistance, house maintenance,
literacy, language classes, and child care.
- Decent, affordable after school care.
- Decrease the time it takes to receive needed
services.'
- Decrease racial disparities related to wages and
services offered. Environmental justice policies
for affordable housing. Particularly in siting new
housing location.
- Develop local land use policies for inclusionary
housing.
- Rental inspection policies and active codes
enforcement.
- Re-evaluate shelter policies that refrain from
separating families.
- Create housing policies for rent stabilization.
Particularly for young adults, people with
HOUSING AND SERVICE POLICIES disabilities and senior residents. People without
family are more likely to become homeless.
- Require wrap-around services for families
purchasing a home for the first time such as
budgeting, general maintenance, and
maintaining good credit.
- Support the practice, process and development
of integrated affordable housing.
- Review land use ordinances to support higher
density residential development.
- Provide education and a process for families
that experience homeless due to natural
disasters or unforeseen housing problems.
- Build more single occupancy units.
- Create a robust vacant property redevelopment
program.
- Fund an agency to expand its housing
FUTURE CDBG SPENDING placement services. Fully utilize the Coordinated
Entry System as a tool to find available unit
locations.
- Fund "after placement" entry services that
provide groceries, furniture, small scale kitchen
utensils and equipment.
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EA,V Stakeholder Summary August 2019
t City of Rosemead
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- Fund social service agencies to increase
programs for rapid rehousing.
- Increase funding for homeless prevention
services and programs. Particularly, rental
assistance, eviction assistance, and deposit
payments.
- Safe crosswalks, sidewalks and routes to
schools. Particularly at: streets around Encinita
Elementary; Savanna on Rio Hondo Ave.and
Marshall St.; streets around Jansen Elementary
on Marshall St. and Walnut Grove.
- Crossing guards.
- Programs that promote more resident
volunteerism focused on community clean up
and maintenance.
- Fund healthy food programs in schools and.
elderly populations.
- Create more green public spaces.
- Family preservation programs.
- Funds to defray the cost of internet access for
families with school-age children.
'There is often a delay in service of two to three weeks after an intake process for a family to receive the
appropriate needed services.
*It should be noted that the student enrollment in Rosemead has gone down 25%, many contribute this
decrease, in part, to high housing costs. The decrease in children and family size will ultimately change
the Rosemead community.