CC - Item 3A - Public Hearing on Second Substancial Amendment to The 2019-2020 Annual Action Plan and Citizen Particiaption PlanROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER •0 .
DATE: MAY 12, 2020
SUBJECT: PUBLIC HEARING ON SECOND SUBSTANTIAL AMENDMENT TO
THE 2019-2020 ANNUAL ACTION PLAN AND CITIZEN
PARTICIPATION PLAN
SUMMARY
In accordance with the U. S. Department of Housing and Urban Development (HUD) 24 CFR
Part 91.505, and the Citizen Participation Plan for Rosemead, a substantial amendment to the
current 2019-2020 Annual Action Plan and the City's Citizen Participation Plan is required. The
substantial amendment is needed in order to: (1) Accept a special allocation of $443,682 to be
used to prevent, prepare for, and respond to the coronavirus (COVID-19) from HUD; (2)
Allocate funds to Community Development Block Grant (CDBG) and HOME Investment
Partnership (HOME) programs for new activities in Public Services and Economic Development,
as follows: Rental/Utilities Subsistence Payments, Public Services such as assistance to a Food
Bank, Purchase of Personal Protective Equipment (PPE), additional funding to the City's Senior
Nutrition program, and Direct Financial Assistance to Non -Profit and For -Profit Businesses; (3)
Increase the 15% cap for public service activities that are assisting with the preparation,
prevention and response to the COVID-19 pandemic; (4) Increase the Administration Cap under
the HOME program; (5) Reallocate previous year HOME funding; and (6) Revise the 30 -day
public comment period to a 5 -day public comment period.
STAFF RECOMMENDATION
That the City Council:
1. Conduct a public hearing and receive public testimony;
2. Approve the Substantial Amendment to the 2019-2020 Annual Action Plan;
3. Approve the Amendment to the City of Rosemead Citizen Participation Plan; and
4. Provide direction on other HUD -approved CDBG-CV activities, if so desired.
AGENDA ITEM 3.A
City Council Meeting
May 12, 2020
Page 2 of 5
DISCUSSION
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was
signed into Public Law 116-136 to respond to the growing effects of COVID-19. The CARES
Act made available $5 billion in Community Development Block Grant Coronavirus (CDBG-
CV) funds. Of this amount, HUD is allocating $2 billion based on the fiscal year 2019-2020
CDBG formula and made the first allocation of funds; the City of Rosemead's allocation is
$443,682. HUD will allocate the remaining $3 billion based on needs in the following tranches:
$1 billion to states and insular areas, and $2 billion to states and local governments at the
discretion of the HUD Secretary.
The CARES Act provides City's flexibility for the CDBG-CV funding and, in some cases, for
the annual fiscal year 2019-2020 CDBG funding; additionally, the Secretary is authorized to
grant waivers and alternative requirements of statutes and regulations in connection with the use
of CDBG-CV funds and fiscal year 2019 and 2020 CDBG funds (except for requirements related
to fair housing, nondiscrimination, labor standards, and environment). Waivers and alternative
requirements can be granted when necessary to expedite and facilitate the use of funds to
prevent, prepare for, and respond to COVID-19. Moreover, the public comment period is
reduced to not less than 5 days, virtual public hearings may be used when necessary for public
health reasons, the public service cap is suspended during the emergency, and state and local
government may reimburse costs of eligible activities incurred for pandemic response regardless
of the date.
The City of Rosemead has applied for and been granted the following waivers relating to the
current CDBG and HOME programs:
• HOME, CDBG — Citizen Participation Public Comment Period for Consolidated Plan
Amendment
• HOME, CDBG — Citizen Participation Reasonable Notice and Opportunity to Comment
• CDBG — 15 Percent Public Services Activities Cap — Eliminate Cap to Fund Public
Services Activities assisting with the preparation, prevention and response
• HOME — Limitation on the use of funds for the Administration Costs
• HOME — Set Aside for the Community Housing Development Organizations (CHDO's)
• HOME — Reduction of Matching Contributions
The CDBG-CV special allocation is governed through HUD; therefore, entitlement cities, as
recipients, must go through the prescribed regulations regarding amendment; as such,
the City of Rosemead shall amend its approved Annual Action Plans when:
• A substantial change (e.g., 50% or more) in its allocation priorities or a substantial
change in the method of distribution of funds takes place; or
City Council Meeting
May 12, 2020
Page 3 of 5
• Carries out an activity, using funds from any program covered by the Consolidated Plan
(including program income), not previously described in the Action Plan; or
• Substantially change the purpose, scope, location, or beneficiaries of an activity.
The substantial change criteria utilized by the City of Rosemead is determined by a change in an
activity which had been originally initiated through the HUD Program and in which the change
would exceed:
• 25% of the original allocations or when beneficiaries are impacted by the change; and/or
• The description of the activity is modified to the extent whereby the general public would
consider it to be a new activity for that particular program year.
The City of Rosemead is allocating CDBG-CV funds to CDBG activities to help respond to
COVID-19 for Rosemead residents and businesses.
The 2019-2020 Annual Action Plan was approved by the City Council at its meeting on May 14,
2019. Subsequently, the approved Action Plan was submitted to HUD on May 15, 2019, and the
Action Plan Grant Agreements were executed and sent to HUD on September 6, 2019. The City
of Rosemead had to amend the approved Action Plan to include a new activity of land
acquisition and reallocated funds to accomplish this; the first substantial amendment was
approved by City Council at its January 28, 2020 meeting.
The following table exhibits the proposed CDBG-CV and HOME program activities and
allocation:
ROSEMEAD PROPOSED FY 2019-2020
SUBSTANTIAL AMENDMENT CDBG-CV BUDGET
Proposed Funding
Administration
CDBG-CV Administration
$88,736
Subtotal
$88,736
Public Services
Emergency Utility Payment Program
$30,000
Food Bank
$100,000
Purchase of Personal Protection Equipment
$10,000
Senior Nutrition
$14,946
Subtotal
$154,946
Economic Development
Business Assistance
$200,000
Subtotal
$200,000
TOTAL
$443,682
City Council Meeting
May 12, 2020
Page 4 of 5
City Staff is researching the ability to fund drive thru testing sites within Rosemead. US Health
recently entered into partnership with another City for drive thru testing services. According to
US Health, they do not charge the city or the residents for this drive thru testing service. With the
CDBG requirements governing use of CDBG-CV funds, the use of these funds to conduct drive
thru testing sites may be infeasible. Staff at the site would need to gather certain information
from each vehicle attempting to receive services. However, this option may be better suited by
finding a provider such as US Health to conduct the testing for free or using other City funds and
including the activity as part of the upcoming local economic stimulus plan being prepared for
Council.
The Rosemead City Council has the authority to revise the above recommendations.
A draft Substantial Amendment is being made available for public comment between May 12,
2020 and May 18, 2020.
Previous
Funding
Proposed
Funding
City Administration (25% Cap)
Administration
$35,216
$89,179
Community Housing Development Organization
(CHDO)
2017 Funding (15% Set Aside)
$35,100
$0
2018 Funding (15% Set Aside)
$52,025
$0
2019 Funding (15% Set Aside)
$52,758
$0
Subtotal
� X88?
O Jm
. a
Emergency Assistance Program
Short Term Housing Assistance Payments
$0
$85,920
TOTAL
$175,099
$175,099
City Staff is researching the ability to fund drive thru testing sites within Rosemead. US Health
recently entered into partnership with another City for drive thru testing services. According to
US Health, they do not charge the city or the residents for this drive thru testing service. With the
CDBG requirements governing use of CDBG-CV funds, the use of these funds to conduct drive
thru testing sites may be infeasible. Staff at the site would need to gather certain information
from each vehicle attempting to receive services. However, this option may be better suited by
finding a provider such as US Health to conduct the testing for free or using other City funds and
including the activity as part of the upcoming local economic stimulus plan being prepared for
Council.
The Rosemead City Council has the authority to revise the above recommendations.
A draft Substantial Amendment is being made available for public comment between May 12,
2020 and May 18, 2020.
City Council Meeting
May 12, 2020
Page 5 of 5
FISCAL IMPACT
On May 14, 2019, the Annual Action Plan was approved with a total CDBG fund balance of
$1,005,000 and HOME fund balance of $1,490,000. The Substantial Amendment allocates the
special allocation from the CARES Act and reallocates HOME funds to reflect the anticipated
expenditures for the preparation, prevention and response to the COVID-19 Pandemic.
STRATEGIC PLAN IMPACT
The Substantial Amendment to the Annual Action Plan implements the "Key Organizational
Goals" of ensuring the City's continued financial viability by actively pursuing quality economic
development; enhance public safety and quality of life; and beautify residential neighborhoods
and commercial corridors.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process, which includes a
public hearing notice published in the Rosemead Reader on April 30, 2020.
Prepared by:
s
gelica usto-Lupo
Director of Community Development
Attachment A: Substantial Amendment to the 2019-2020 Annual Action Plan
Attachment B: Rosemead Reader Proof
Attachment A
Substantial Amendment to the
2019-2020 Annual Action Plan
CITY OF ROSEMEAD
CONSOLIDATED PLAN 2015 — 2020
2019 — 2020 ANNUAL ACTION PLAN
SUBSTANTIAL AMENDMENT
ALLOCATION OF FUNDS RELATED TO THE CARES ACT
Introduction
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was
signed into Public Law 116-136 to respond to the growing effects of COVID-19. The CARES Act
made available $5 billion in Community Development Block Grant Coronavirus (CDBG-CV)
funds. Of this amount, HUD is allocating $2 billion based on the fiscal year 2019-2020 CDBG
formula and made the first round of fund allocations; the City of Rosemead's allocation is
$443,682. HUD will allocate the remaining $3 billion based on needs in the following tranches:
$1 billion to states and insular areas, and $2 billion to states and local governments at the discretion
of the HUD Secretary.
The CARES Act adds flexibility for the CDBG-CV funding and, in some cases, for the annual
fiscal year 2019-2020 CDBG and HOME funding; additionally, the Secretary is authorized to grant
waivers and alternative requirements of statutes and regulations in connection with the use of
CDBG-CV funds and fiscal year 2019 and 2020 CDBG funds (except for requirements related to
fair housing, nondiscrimination, labor standards, and environment), 2017, 2018 and 2019 HOME
funds. Waivers and alternative requirements can be granted when necessary to expedite and
facilitate the use of funds to prevent, prepare for, and respond to COVID-19. Moreover, the public
comment period is reduced to not less than 5 days, virtual public hearings may be used when
necessary for public health reasons, the public service cap is suspended during the emergency, and
state and local government may reimburse costs of eligible activities incurred for pandemic
response regardless of the date.
The CDBG-CV special allocation is governed through HUD; therefore, the City of Rosemead as
an entitlement city, must comply with HUD prescribed statutes and regulations to add this special
funding to the current Annual Action Plan. Per HUD 24 CFR 24 Part 91.505 -the jurisdiction, in
this case the City of Rosemead, shall amend the approved Consolidated Plan and Annual Action
Plans when:
• A substantial change (e.g., 50% or more) in its allocation priorities or a substantial change in
the method of distribution of funds takes place; or
Carries out an activity, using funds from any program covered by the consolidated plan
(including program income), not previously described in the action plan; or
0 Substantially change the purpose, scope, location, or beneficiaries of an activity.
Additionally, the substantial change criteria utilized by the City of Rosemead as established by the
City's Citizen Participation Plan is determined by a change in an activity which had been originally
initiated through the HUD Program and in which the change would exceed:
1. 25% of the original allocations or when beneficiaries are impacted by the change; and/or
2. The description of the activity is modified to the extent whereby the public would consider it
to be a new activity for that particular program year.
Proposed Amendment to the 2015 — 2020 Consolidated Plan
The CARES Act special allocation of $443,682 in CDBG-CV funding, is being proposed to be
added to the 5 -Year Consolidated Plan under the Strategic Plan as a separate funding stream to be
used to fund eligible CDBG programs/activities to prevent, prepare for, and respond to COVID-
19.
In addition, the City is amending its current Citizen Participation Plan to allow for Virtual Meetings
and public comment for the proposed use of all Department of Housing and Urban Development
funds.
• Citizen Participation Plan
The City is amending its Citizen Participation to establish expedited procedures to draft, propose,
or amend consolidated plans. Expedited procedures must include notice and reasonable
opportunity to comment of no less than 5 days. The 5 -day period can run concurrently for
comments on the action plan amendment and amended citizen participation plans.
In-person public hearings are not required. The City of Rosemead may meet public hearing
requirements with virtual public hearings if. 1) national/local health authorities recommend social
distancing and limiting public gatherings for public health reasons; and 2) virtual hearings provide
reasonable notification and access for citizens in accordance with the City's certifications, timely
responses from City officials to all citizen questions and issues, and public access to all questions
and responses.
Proposed Amendment to the 2019 — 2020 Annual Action Plan
As part of the CARES Act, additional funding is also anticipated in the current fiscal year to aid
those affected by COVID-19. Funds from the CARES Act would be dedicated to the economic
development assistance program to assist businesses and public service programs to assist
residents of Rosemead. In addition, the City has received a waiver to reallocate certain HOME
funds from previous fiscal years. The CDBG-CV and HOME program Proposed
Programs/Activities and Allocations are listed in the tables below:
ROSEMEAD PROPOSED FY 2019-2020 SUBSTANTIAL AMENDMENT CDBG-CV BUDGET
Previous
Funding
Proposed Funding
Administration
CDBG-CV Administration
Administration
$88,736
Subtotal
$89,179
$88,736
Public Services
Emergency Utility Payment Program
$30,000
Food Bank
Community Housing Development Organization
(CHDO)
$100,000
Purchase of Personal Protection Equipment
$10,000
Senior Nutrition
$35,100
$14,946
Subtotal
$154,946
Economic Development
2019 Funding (15% Set Aside)
Business Assistance
$0
$200,000
Subtotal
$200,000
TOTAL
$443,682
Previous
Funding
Proposed
Funding
City Administration (25% Cap)
Administration
$35,216
$89,179
Suof�,�
Community Housing Development Organization
(CHDO)
2017 Funding (15% Set Aside)
$35,100
$0
2018 Funding (15% Set Aside)
$52,025
$0
2019 Funding (15% Set Aside)
$52,758
$0
Emergency Assistance Program
Term Housing Assistance Payments
$$0►
$85,920
�Short
A7t�Ll • ',
Ri
.
, sAill -e v L "'a''
` ri t c '$ k, a'
TOTAL
$175,099
$175,099
A description of the new activities being added to the fiscal year are as follows:
• Public Services
o Subsistence Payments
This short-term (no more than three months) emergency payments in rental and/or
utilities assistance is in response to COVID-19 impacted individuals or families,
for the purpose of preventing homelessness.
o Food Bank
The City will work with a local food bank or other non-profit agency to assist with
the distribution of meals to local families. By teaming with the local agency, the
Agency will have additional purchasing power to obtain the food desperately
needed by families who have been affected by COVID-19 pandemic.
o Purchase of Personal Protective Equipment
As part of HUD's Prepare, Prevent and Respond to the pandemic, the City will use
a portion of the CARES Act funds to purchase the Personal Protective Equipment
that staff will require when City Hall reopens to the public. The purchase will
include masks, gloves, sanitizer, etc. to prevent the spread of COVID-19 and keep
our City Staff safe from infection.
o Senior Nutrition
Funds will be used to offset the increased costs associated with operating the
program during the pandemic. This includes the cost of food, staff and take away
items (plastic bags and food containers).
• Economic Development
The City has in place an Economic Development Program that assists commercial
businesses with fagade improvements. This Amendment will expand this program to
include grants or loans to support new businesses or business expansion to create jobs and
manufacture medical supplies necessary to respond to infectious disease and avoid job loss
caused by business closures related to social distancing. The program will provide short-
term working capital assistance to small businesses to enable retention of jobs held by low -
and moderate -income persons.
Emergency Assistance Payments
The City has requested and been granted several waivers and suspensions related to the
HOME Program. One of the waivers that was granted to the City is the ability to reallocate
funds from the 2017, 2018 and 2019 fiscal years. These funds are specified for certain uses
by HUD and an allocation has been set aside in past years in accordance with the
guidelines. These HOME Funds will be reallocated to assist homeowners who may have
fallen behind with rent and mortgage payments due to the pandemic.
The above activities and funding amounts will be revised in the Annual Action Plan.
HUD requires that entitlement communities provide the public with a 5 -day comment period to
provide residents and other interested parties an opportunity to provide input on the proposed
Amendment. This public comment period will run from May 12, 2020 to May 19, 2020.
Public Comments
The City will incorporate any comments received during the public comment period.
Attachment B
Proof of Publication for
April 30, 2020
Rosemead Reader
125 E Chestnut Ave
Monrovia, CA 91016
(626) 301-1010
PROOF OF PUBLICATION
(2015.5 C.C.P.)
State of California )
County of LOS ANGELES )
I am a citizen of the United States and a resident of
the State of California; I am over the age of
eighteen years, and not a party to or interested in
the above -entitled matter. I am a principal clerk of
the printer of the Rosemead Reader, a newspaper
published in the English language for the city of
ROSEMEAD, county of LOS ANGELES, and
adjudged as a newspaper of general circulation by
the Superior Court of the County of LOS
ANGELES, State of California on the date of June
22, 2012, Case Number GC048894; that the
notice, of which the annexed is a printed copy, has
been published in each regular and entire issue of
said newspaper and not in any supplement thereof
on the following dates, to -wit:
April 30, 2020
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at Monrovia, California,
This 30th Day April 2020
Signature
(This space is for the County Clerk's Filing Stamp only)
Proof of Publication of