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CC - Item 6A - 2020-2024 Five-Year Consolidated Plan U E M F 9 ROSEMEAD CITY COUNCIL STAFF REPORT CIVIC PRIDE 4 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 S E M4s.,,. elt '9 CIVIC PRIDE "wer,„rt . • mfooRpo.:49;es% Attachment A PowerPoint Presentation 4„,,,,/,,,„ , ..-10. gio"EA,I4ul. \ .. 4nt.tll Ic>wn r\ttteri( .i City of Rosemead IP C . i . 111 1111 . i ._ . 0Vis . no 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. t I<pj EA F, q, �k z, .s < s `:` W��?'..., "w: fw". as",`�°46/7. 0A %vliigt, }tee .' 444°,41!".31.!44 "°"^ " 'a d e.'14e",.`H 4'.: "1 ..°4'4444"2'44'4°212'."4" ,,Pa^ arr7i 2°"2: , ed° 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 ij* ' Survey � � • Community • Public Meetings and Hearings i , % = ,.. -Tvi 9 ' :-.-,;' „,,,4,,,,„:4 Vt gay .� a til .1,41:1,1\44 '*,''4' 4 .4 441, , 04404 VA-4,4)44 OSE EAD 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 A ®SE EAD Aem ng leitSWA,;u o k,,. d*at6.52,r4re_W ° ° ... 5. Nr °T".w,x. _, , vv.�'» nayc.s y;^ a ,,1**Vi a 6 is m' x.1.4 nr,s;ae'Q` u^switraharenaLn&" '"a .,p.;i449 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 $3,733,315 Source:HUD Exchange,•4-8-2019, Section 108 offers state and local governments the ability to access low-cost, long-term federally guaranteed financing for housing, economic development, and infrastructure projects or loan funds. These borrowing capacity calculations are based on the FY 2019 CDBG grant awards as well as grantees' outstanding Section 108 guaranteed loans and commitments as of April 2019. OSE EAD • Thank You Questions ? Contact Ben Kim, Assistant City Manager (626) 569-2169 OSEicro, EA® ;40040;.0.001egtq$..°+0...10,P"1,1',B40.1'.#nty 4.40tl ".`x„‘".. ••e"r:oy' '...F$.43',.;....$ ..u;:t°- ,$„,x,p. ,—,-;,y 7e es.$,,rvGas ,7;wrep” ,e :4$$a $,,.$$,,*.o$A", ara .$1„*.,"44..,25,,,' 6%1.y '.."mrnatgitlig01.4Zintd. p1' bAsSr.Wo. E M '9 l', CIVIC PRIDE A�0APpp 9t 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. E M O '9 a: aa):C CIVIC PRIDE fraf -0000 '*ORPOR Attachment C Social Service Stakeholder Interview Summary ire 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. Fk: .3jE EA,V Stakeholder Summary August 2019 t City of Rosemead 1 nI.<v'.Small lu<v<,Amvri<:< - 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.