CC - Item 5D - Approval of the 2020 -2025-Condolidated Plan, CDBG and HOME Programs Annual Action Plan For Fiscal Year 2020-2021ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER KU
DATE: APRIL 28, 2020
SUBJECT: APPROVAL OF THE 2020 — 2025 CONSOLIDATED PLAN, CDBG AND
HOME PROGRAMS ANNUAL ACTION PLAN FOR FISCAL YEAR 2020-
2021
SUMMARY
A Consolidated Plan is required by the U.S. Department of Housing and Urban Development
(HUD) as a condition of receiving federal funding. The City currently receives funding under the
Community Development Block Grant (CDBG) Program and HOME Investment Partnerships
(HOME) Program.
The 2020-2025 Consolidated Plan is required to include an Annual Action Plan for the period of
July 1, 2020 through June 30, 2021, which covers the first year of the five-year plan. The Annual
Action Plan includes a list of the activities the City will undertake to address priority needs and
local objectives with anticipated program income and funds received during the next program
year for meeting housing and community development objectives as outlined in the Consolidated
Plan.
Federal funding awards for Fiscal Year (FY) 2020-21 have been announced and it is estimated
that the City of Rosemead will receive $754,219 in CDBG funds and an allocation of $356,716
in HOME funds. It should be noted that under the CDBG program eligible projects must either
provide benefits to low- or moderate -income persons, eliminate slum or blighted conditions, or is
an urgent need. In addition, at least 70 percent or more of the FY 2020-21 entitlement total must
be used for activities benefiting low- and moderate -income residents of Rosemead. Of the
HOME funds received, funds can only be used for housing activities benefiting low- or
moderate -income persons.
STAFF RECOMMENDATION
It is recommended that the City Council take the following actions:
Approve the 2020 — 2025 Consolidated Plan and FY 2020 — 2021 Annual Action Plan
including CDBG and HOME funding recommendations, and authorize the submittal of
AGENDA ITEM 5.1)
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the Consolidated Plan and Annual Action Plan to the U.S. Department of Housing and
Urban Development (HUD).
2. Authorize City Manager to execute all appropriate and necessary documents to receive
funding and implement approved use and make necessary budget adjustments based on
HUD's final allocation amount.
3. Award the following public service agencies with CDBG funds and authorize the City
Manager to execute agreements:
• Family Promise of San Gabriel Valley - $5,000
• Southern California Housing Rights Center - $10,000
• Senior Nutrition Program — $60,000
• Summer Youth Employment Program - $35,000
BACKGROUND
The City of Rosemead is a federal entitlement grant recipient of Community Development Block
Grant and HOME Investment Partnership funds 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 and Annual Action Plan. It is called a Consolidated Plan
because it consolidates the application process for HUD's four (4) entitlement grants into one
consolidated plan and application. The four grants are: CDBG, HOME, Housing Opportunities
for Persons with AIDS (HOPWA), and Emergency Shelter Grant (ESG). All four grants are
driven by an entitlement formula process set by the federal government. The City is eligible to
participate in two (2) of these programs: CDBG and HOME.
In order to receive the FY 2020-21 allocations, the City must comply with the following
requirements of the Consolidated Plan final rule regarding pre -submission requirements:
➢ Fulfill citizen participation requirements by conducting a public hearing to receive
citizen input regarding annual funding needs;
➢ Publish a Draft Consolidated Plan and Annual Action Plan for a 30 -day comment
period in order to receive citizen input regarding the final document; and
➢ Conduct a public hearing adopting the final Consolidated Plan and the Annual Action
Plan.
HUD requires every state and local government that receives CDBG and HOME funding to
prepare a five-year comprehensive plan which brings community needs and resources together to
achieve statutory goals, and thereby address decent housing, create a suitable living environment
and expand economic opportunities for the city's residents, particularly for low- and moderate -
income persons. As an Entitlement Community, the City of Rosemead is required to prepare and
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submit a five-year Consolidated Plan that serves as the federal planning document for receiving
CDBG and HOME Program funds.
The City is also required to prepare and submit an Annual Action Plan to HUD which serves to
update and delineate efforts in the program year ahead toward meeting the priorities established
by the City in its Consolidated Plan. The Annual Action Plan operates on a single program year
established by the City (i.e., July 1, 2020 through June 30, 2021), whereas the Consolidated Plan
covers a five-year planning period (July 1, 2020 through June 30, 2025).
Below is a list of goals for the next five-year period that were discussed during the community
engagement period that was completed earlier this year. Proposed funding over the five-year
period is also included in the table.
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Sort
Goal Name
Start
End
Category
Geographic
Needs
Funding
Goal Outcome
Order
Year
Year
Area
Addressed
Indicator
1
Expand Fair
2020
2025
Affordable
Community
Fair Housing
CDBG: $50,000
50: Families assisted
Housing choice
Housing
Wide
20: Tenant or
and access
Public Housing
landlord training
Non -Homeless
workshops
Special Needs
2
Expand
2020
2025
Affordable
Community
Housing
CDBG:
10: new housing
affordable
Housing
Wide
Economic
$1,100,000
units
housing
Public Housing
Development
HOME: $487,500
20: Households
opportunities
Non -Homeless
purchased homes
Special Needs
10: households with
special needs
assisted
3
Maintain viable
2020
2025
Affordable
Community
Housing
CDBG: $750,000
25: units
and efficient
Housing
Wide
rehabilitated
energy efficient
Lead testing
10: Commercial
housing and
and
facades rehabilitated
commercial
abatement
areas
4
Maintain Safe
2020
2025
Code
Eligible Low
Housing
CDBG: $500,000
2,000: individuals
and Green
Enforcement
and
Accessibility
benefit from park
Neighborhoods
Accessibility
Moderate -
Pedestrian
improvements
Income
facilities
3,000: individuals
Block
benefit from new
Groups
sidewalks and or
safe routes to school
1,500: individuals
benefit from
infrastructure
upgrades
5
Provide Vital
2020
2025
Non -Homeless
Community
Supportive
CDBG: $600,000
200: individuals
Public Services
Special Needs
Wide
Services
homelessness
assisted
300: individuals
assisted from public
services
500: individuals
benefit from
nutrition and other
senior program
services
6
Planning and
2020
2025
Rehabilitation
Community
Housing
CDBG: $750,000
Efficient and
Administration
Administration
Wide
HOME: $262,500
effective
Community
administration of
Development
planning and
CHDO support
execution of
community
development and
housing
rehabilitation
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The Annual Action Plan is a part of the Consolidated Plan, which takes all HUD requirements
regarding planning, needs analysis, reporting, budgeting, citizen participation and certifications
and incorporates them into one process. The full Consolidated Plan must be completed once
every five (5) years and the Annual Action Plan must be completed annually.
ANALYSIS
After much deliberation and thought, it is being proposed that the activities shown in Attachment
A be funded under the CDBG and HOME programs and included in the City's Annual Action
Plan for the FY 2020-21.
CDBG Program
In reviewing the CDBG recommendations, it would be appropriate for the City Council to
remember that only three broad funding categories are considered eligible under CDBG
regulations. A project must either provide benefits to low- or moderate -income persons,
eliminate slum or blighted conditions, or satisfy an urgent need. In addition, of the CDBG funds
received, no more than 15% ($113,132) of the annual grant amount can be used for social service
activities; no more than 20% ($150,843) of the grant amount can be used for Planning and
Administrative services; and at least 70% of all funds must be used for low -to -moderate income
activities.
It should be noted that there were no new public service funding requests submitted for the FY
2020-21. Funding requests from Family Promise of San Gabriel Valley and Housing Rights
Center have been received at the same amounts as last year. The Annual Action Plan continues
to include funds for the City's Senior Nutrition Services at the Garvey Center and the Summer
Youth Employment Program that was added last year as part of the Substantial Amendment to
the Annual Action Plan and it would be appropriate to continue to support the public service
agencies at the proposed funding levels..
HOME Program
In reviewing the HOME funds recommendations, it would be appropriate for the City Council to
remember that no more than 10% ($35,671) can be used for administrative and program delivery
activities. At least 15% ($53,507) must be set aside for CHDO, as constituted under the
regulations. The balance of funds can only be used for housing activities. Unexpended amounts
were carried over from the FY 2020-21 budget for Owner -Occupied Rehabilitation Loans and
the affordable housing program. In addition to the activities above, the City is currently pursuing
an opportunity to develop affordable housing.
FISCAL IMPACT — The Annual Action Plan includes HUD funding allocation for CDBG and
HOME programs.
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STRATEGIC PLAN IMPACT — The beautification of residential neighborhoods and enhanced
quality of life are a couple of goals and priorities in the City's Strategic Plan that are supported
through the goals and activities established in the Consolidated Plan and Annual Action Plan.
Prepared by:
gelica austo-Lupo
Director of Community Development
Attachment A — FY 2020-21 CDBG & HOME Funding Allocations
Attachment B — FY 2020-25 Consolidated Plan and Annual Action Plan
Attachment A
FY 2020-21 CDBG & HOME Funding Allocations
Attachment A
CDBG & HOME ALLOCATIONS
ROSEMEAD PROPOSED FY 2020-2021 CDBG BUDGET
Program Administration Cost (PAC)
Planning & Administration (20% Max)
$135,219
Subtotal
Owner Occupied Rehabilitation Loans
Subtotal
$135,219
Rehabilitation (Program and Activity Delivery Cost - ADC)
Handyman Grants
CHDO (15% Set Aside)
Subtotal
$110,000
Emergency Grants
Affordable Housing Assistance
$20,000
Lead Paint Testing
$118,000
$118,000
$356,716
$10,000
Lead Paint Abatement
$40,000
Commercial Fagade Improvements
$100,000
Subtotal
$280,000
Social Services (15% Max)
Summer Youth Program
$35,000
Senior Nutrition Program
$60,000
Family Promise
$5,000
Fair Housing
$10,000
Subtotal
$110,000
Public Facilities
Garvey Park HVAC
$128,000
Subtotal
$128,000
Acquisition
Acquisition of land
$229,000
Subtotal
$229,000
Total CDBG Allocation
$882,219
ROSEMEAD PROPOSED FY 2020-2021 HOME BUDGET
Program Administration Cost (PAC)
Planning & Administration (10% Max)
Subtotal
$35,216
$35,216
Rehabilitation (Program and Activity Delivery Cost - ADC)
Owner Occupied Rehabilitation Loans
Subtotal
$150,000
$150,000
Community Housing Development Organization
CHDO (15% Set Aside)
Subtotal
$53,500
$53,500
Affordable Housing Assistance
Development Assistance
Subtotal
Total HOME Allocation
$118,000
$118,000
$356,716