Item Coversheet
Item #11.

Staff Report 055-21

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

4/5/2021








SUBJECT


2021 CDBG / HOME Funding Allocation and Action Plan Approval
Key Points
  • The City is required by the US Department of Housing and Urban Development to adopt an annual Action Plan describing how federal Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds will be allocated.
  • Resources available for the 2021 program year (July 1, 2021–June 30, 2022) include $1,306,414 in CDBG funds and $688,711 in HOME funds.
  • A 27-person review committee composed of community representatives and City staff prioritized the applications and has provided funding recommendations for the 2021 Action Plan.
  • Recommended funding supports projects that correspond with the 5-year Consolidated Plan goals and respond to the impacts of COVID-19 on vulnerable community members or the broader economic downturn caused by the pandemic.
  • Estimated outcomes of 2021 CDBG and HOME projects include 180 people receiving public services; 80 new business owners receiving technical assistance; 1 public facility improvement; 1 new affordable housing unit produced; 10 homeowner housing units preserved; and 85 households receiving rental assistance.
  • These numbers are in addition to the 1,944 individuals receiving public services and 445 business receiving technical assistance through the CDBG-CV funds.

Strategic Plan Alignment

 

Goal 3, Objective 3.2: Improve services available to underserved or vulnerable residents.


Present Situation

The Department of Housing and Urban Development (HUD) requires an annual Action Plan that outlines how the City intends to allocate its CDBG and HOME resources. The proposed draft of the 2021 Action Plan is attached and available at www.cityofvancouver.us/cdbg.

  

CDBG and HOME awards made through the 2021 Action Plan process must be consistent with the goals and objectives included in the City’s 2019-2023 Consolidated Plan related to Affordable Housing, Public Services, Economic Development, and Public Facilities and Infrastructure.

 

The City allocates the majority of its annual CDBG and HOME funding to community partners through a competitive application process as described in the 5-year Consolidated Plan. The following describes the 2021 Action Plan process and funding recommendations.

 

Responding to COVID-19

The revised recommendations focus on vulnerable community members and/or the broader economic downturn caused by the pandemic. For a description of how each project contributes to the COVID-19 response, see the project descriptions attached to the resolutions. The agencies have confirmed their ability to implement the projects under the public health emergency conditions in place now and will serve additional people or households where increased funding has been recommended.

 

Separate from the 2021 CDBG and HOME funds, the City has received an additional $1,127,065 in CDBG funds (CDBG-CV) from the second round allocated under the federal Coronavirus Aid, Relief and Economic Security (CARES) Act. See the “CDBG Coronavirus Response” staff report dated April 5, 2021 for the proposed use of CDBG-CV funds.

 

2021 Funds available

An estimated $1,306,414 in CDBG and $688,711 in HOME funds is available for the 2021 program year starting July 1, 2021 and ending June 30, 2022. While 2021 entitlement amounts have been confirmed by HUD, available funds are subject to change based on program income and spending from previous years’ projects.

 

Application and prioritization process

The application process for 2021 CDBG and HOME funds began in October of 2020. A 27-person volunteer committee composed of community representatives and City staff completed the prioritization process. The committee reviewed grant proposals, attended applicant presentations, scored and prioritized the projects, and suggested funding options.

 

2021 CDBG awards

Proposed funding awards for 2021 CDBG ($1,306,414) which supports the following priorities. A list of funding awards and project descriptions are attached.

 

  • Public services ($200,701, 15%): Case management for homeless and at-risk youth; homeless outreach; housing intake and diversion services; and financial literacy/first-time homebuyer education.
  • Business assistance ($77,200, 6%): Technical assistance, grants and loans for small business owners. (Note: CDBG-CV funding will provide an additional $390,577)
  • Public Facilities Improvements ($25,000, 2%). 
  • Housing services ($124,118, 10%): Case management to help households experiencing or at risk of homelessness find and maintain rental housing. Paired with HOME-funded rental assistance.
  • Administration and Implementation ($329,395 25%): Staff and administrative costs to carry out the CDBG program and projects. The amount of CDBG funds that may be used for administration is capped by federal guidelines.
  • City housing rehab program ($250,000, 19%): Loans to low-income homeowners to assist with needed repairs that address health, safety and livability issues.
  • City Set-Aside for Fourth Plain Commons Community Center ($300,000, 23%).

 

 2021 HOME awards

Proposed funding awards for 2021 HOME ($688,711) supports the following priorities. A list of funding awards and project descriptions are attached.

 

  • Rental assistance ($499,840, 73%): Assistance with security deposits, rent and utilities to help households experiencing or at risk of homelessness afford housing. Paired with CDBG-funded housing services.
  • Housing projects ($120,000, 17%): Construction of multifamily housing for seniors and low-income families. These projects will now be funded through the Affordable Housing Fund.
  • Administration ($68,871, 10%): Staff and administrative costs to carry out the HOME program and projects. The amount of HOME funds that may be used for administration is capped by federal guidelines.

Advantage(s)

Projected outcomes of the recommended 2021 projects are shown in the table that follows. The recommended awards would allow the City to continue making progress toward meeting the five-year projected outcomes from the 2019-2023 Consolidated Plan. Note that projects funded in one program year may be implemented and/or completed in subsequent program years.

Projected Outcomes

Project Type

Outcome Measure

Total Benefit

Public Services

Individuals

180

Business Assistance

Businesses

80

Public Facilities

Individuals

5000

Housing Services and Rental Assistance

Households

85

Housing Projects

Units Created

1

Housing Rehab Program

Units Rehabbed

10


Disadvantage(s)

None of note.


Budget Impact

The proposed funding recommendations are supported by the City’s federal CDBG and HOME entitlements and program income. There will be minimal impact on the City’s budget.


Prior Council Review

March 1, 2021, City Council workshop, 2021 Action Plan funding recommendations.


Action Requested

On Monday, April 5, 2021, following a public hearing, adopt a resolution approving and adopting the 2021 Community Development Block Grant and HOME Investment Partnerships Action Plan, and authorizing the City Manager to execute agreements on behalf of the City of Vancouver, consistent with the 2021 CDBG and HOME Council approved funding awards.

 

Peggy Sheehan, Community Development Programs Manager, 360-487-7952

 


ATTACHMENTS:
Description
2021 CDBG & HOME Action Plan Project Descriptions
2021 CDBG & HOME Proposed Award Recommendations
2021 Action Plan - Resolution
Exhibit A - 2021 CDBG and HOME Action Plan
Action plan memorandum
2021 Funding Plan - Public Hearing 4.5.2021