AGENDA TITLE:
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Public Hearing to Consider Adopting a Resolution Approving the 2024-2028 Consolidated Plan and 2024-2025 Annual Action Plan for the Community Development Block Grant Program (CD)
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MEETING DATE:
May 1, 2024
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
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RECOMMENDED ACTION:
Public hearing to consider adopting a resolution approving the 2024-2028 Consolidated Plan and 2024-2025 Annual Action Plan for the Community Development Block Grant Program (“CDBG”).
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BACKGROUND INFORMATION:
A public hearing is required as part of the federal requirements under the U.S. Department of Housing and Urban Development (“HUD”) for the CDBG program.
Overview
The overall goal of the CDBG program is to serve low- and moderate- income persons by developing viable urban communities through the following actions: providing decent housing; providing a suitable living environment; and expanding economic opportunities.
The 2024-2028 Consolidated Plan is a five-year planning document for the CDBG program, which also contains the 2024-2025 Annual Action Plan. The Consolidated Plan provides an outline of the City actions to be undertaken in the next five years in relation to capital improvements, economic development, public services, infrastructure improvements, housing, homelessness, special needs, and other various community development type activities, of which are identified by the City and the community. The 2024-2025 Annual Action Plan presents a detailed description of each activity proposed for the next CDBG program year, as well as the City’s CDBG budget and goals for that year.
The process of developing the 2024-28 Consolidated Plan has involved a significant amount of community outreach and public involvement. Outreach included the distribution and collection of a community needs survey, a workshop focused on noticing the public of CDBG funding and community needs, consultations with local organizations and stakeholders, Lodi Improvement Committee meetings that encourage citizen participation and public comment, a 30-day public review period for the draft consolidated and annual plan documents, as well as public hearings to allow for public feedback after the release of the Draft 2024-2028 Consolidated Plan and 2024-25 Annual Action Plan.
The information gathered through the outreach process pertaining to community needs and public comment is then combined with a review of demographic and economic data sets, analyzed, and assessed, and then developed into a Needs Assessment and Housing Market Analysis that is provided within the Consolidated Plan. Once these two sections are completed, they form the basis of the Strategic Plan section, which details City goals for addressing priority needs over the next five years.
2024-28 Consolidated Plan Priority Needs and Goals
Based on community outreach, data collection, and analysis of housing, socio-economic and infrastructure characteristics, the City proposes ten (10) priority needs for the 2024-28 Consolidated Plan cycle:
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• Rehabilitate Existing Homes |
• Increase Rental Subsidy Opportunities |
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• Increase Home Ownership for LMI Families |
• Increase Public Services to Youth, Crime Prevention, and Drug Abuse Counseling |
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• Maintain Existing Affordable Rental Housing |
• Increase and/or Improve Parks and Recreation Opportunities |
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• Build more Affordable Rental Housing |
• Increase Youth Center Opportunities |
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• Build more Family-sized Units |
• Reduce Homelessness |
Staff took into consideration the opinions of residents, community stakeholders, community-based organizations, the Lodi Improvement Committee, City staff, and various other professional and influential members of the community to determine which goals would best address the identified priority needs. The result was the creation of six (6) primary goals that would be the focus over the next five years:
Improve Public and Community Facilities
• Improve, renovate, update and/or modernize community, social service, and or public owned facilities.
Preserve and Increase Affordable Housing
• Rehabilitate and preserve existing housing stock, acquire land, and or partner with agencies or housing development entities to build new affordable housing.
Support Critical Public Services
• Support local non-profits and social services to provide critical community services.
Encourage Fair Housing Practices
• Support the City and its partners to implement best fair housing practices.
Reduce Homelessness
• Reduce homelessness through support of public services, shelter operations, and shelter development.
Planning and Administration
• Support City staff to plan and administer CDBG entitlement funds.
Annual Action Plan
The 2024-25 Annual Action Plan is the first of five annual action plans for the 2024-28 CDBG period; it is incorporated into the five-year Consolidated Plan document and includes the budget for the program year, as well as the proposed projects and estimated allocations for each project. Though HUD has not released the amount of CDBG awards for the 2024-25 program year, the City estimates that it will receive approximately $600,000 for the 2024-25 program year. The City has a guideline of allocating 40 percent of the annual CDBG award (net of administrative costs) to community-based organizations (“CBOs”), with the remainder allocated to City projects. Also, HUD places a yearly 15 percent cap on funds spent on public services.
Based upon the estimated allocation, the distribution of funds will be as follows:
Capital projects $390,000 (Includes project cost and activity delivery/admin costs)
CBO projects $ 90,000 (15% Cap)
Administration $120,000 (20% Cap - Includes fair housing activities)
TOTAL $600,000
The City received two applications for capital projects requesting over $483,000 and are recommending partial funding of one application. In addition, the City of Lodi Graffiti Abatement Program will be receiving $15,000 out of the Capital project funding will go to activity delivery costs for the program. The CBO projects, a portion of the Graffiti Abatement Program, and Program Administration will be awarded funding out of the Public Service funds as listed below:
Program Administration
Planning and Administration $102,000
San Joaquin Fair Housing - Fair Housing Services $18,000
City Service Programs
Graffiti Abatement Program (Public Services Funds) $15,000
CBO Service Programs
PREVAIL (Formerly Women’s Center Youth and Family Services) - Propel Program $10,000
LOEL Senior Center - Meals on Wheels $10,000
Second Harvest Food Bank - Food Assistance $10,000
Community Partnership for Families - Family Resource Center $25,000
The Salvation Army - Hope Harbor Operations $20,000
City Capital Project Programs (allocation includes activity delivery costs)
Parks and Recreation - $215,000
Graffiti Abatement - $15,000
CBO Capital Project Programs (allocation includes activity delivery costs)
DCDC/HACSJ - Salas Park - $160, 000
The review of the applications centered on the rating criteria that focuses on the following areas:
• Serving Priority Populations. Programs and projects were evaluated on whether they serve targeted priority populations, as identified in the Consolidated Plan.
• Activity Need and Justification. Activities were evaluated on their ability to address a significant community need and their benefit to very low-income persons.
• Readiness to Proceed. Programs and projects were evaluated based on their feasibility of implementation, overall and within the allotted time frame.
• Cost Reasonableness and Effectiveness. Budgets were reviewed to determine completeness and reasonableness of all costs related to the request for CDBG funding. Organizations applying for service funding were also evaluated on their ability to become self-sustaining.
• Activity Management and Implementation. Applicants were evaluated on past experience, administrative capacity, and financial management.
• Past Performance. Applicants previously receiving CDBG funds from the City were evaluated on their reporting and timely expenditure of funds
Funding Allocation
The Department of Housing and Urban Development (“HUD”) has not released the amount of CDBG awards for the 2024-25 program year. The City estimates that it will receive $600,000. The City has a guideline of allocating 40 percent of the annual CDBG award (net of administrative costs) to community-based organizations (CBOs), with the remainder going to City projects. There is a 15 percent public service cap on the overall annual allocation.
The Draft 2024-2028 Consolidated Plan and Annual Action Plan was available for public review and comment for 30-days and is being brought back for final approval. Due to delays in the congressional operations, the submission deadline for the Consolidated Plan and Annual Action Plan are tentative at this time; however, the City estimates the adopted Consolidated Plan and Annual Action Plan documents will need to be submitted to HUD no later than May 15, 2024, in order to receive funding beginning July 1, 2024.
Community Engagement
The process of developing both the 2024-2028 Consolidated Plan and the 2024-2025 Annual Action Plan involved various instances of community outreach and public involvement. Outreach included workshops which focused on prioritizing funding and community needs; consultations with local organizations and stakeholders; a 30-day public review period; and a public hearing to allow for public feedback.
Next Steps
Upon City Council approval of the 2024-2028 Consolidated Plan along with the 2024-2025 Annual Action Plan, City staff will submit to HUD for approval. The plan is due to HUD by May 15, 2024.
STRATEGIC VISION:
8B. Public Well-Being: Partner with other entities to provide outreach, education and activities to engage diverse cultures and communities.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Revenue and appropriations have been included in the 2024-25 Fiscal Year budget submission for the Community Development Department.
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John Della Monica
Community Development Director
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Melissa Munoz
Accounting Manager
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Andrew C. Keys
Interim City Manager