Item Coversheet
Item #5.

Staff Report: 080-23

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

5/8/2023








SUBJECT


2023 CDBG and HOME Action Plan
Key Points
  • The City completes an annual Action Plan describing how federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds will be awarded. The draft Action Plan was posted and advertised for public review on April 7, 2023. The Action Plan will be submitted to HUD by May 15, 2023.
  • Resources available for the 2023 program year (July 1, 2023 – June 30, 2024) are estimated to include $1,392,021 in CDBG funds and $791,895 in HOME funds. Additional HOME ARP funds and local AHF levy funds were also made available in the application process. AHF approval will be sent under a separate resolution.
  • A 15-person review committee composed of 7 community representatives and 8 city staff reviewed the applications and application presentations, then scored and ranked the proposals received.
  • Recommended CDBG, HOME, and HOME ARP funding would support 21 projects undertaken by community partners and benefiting people with low to moderate income. See Attachment B for a summary of projects and funding.
  • Proposed outcomes from these awards include:
    • 4,830 people will benefit from various public services
    • 203 business owners will be assisted
    • 15 households will buy an affordable home
    • 13 new units of affordable housing will be acquired
    • 10 homeowners will have their housing repaired and preserved
    • 46 households will access rental assistance with case management
    • 1,500 people will have improved access to mental health services for children
    • 1,890 people will receive supportive services to resolve or prevent homelessness

Strategic Plan Alignment

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


Present Situation

The U.S. Department of Housing and Urban Development (HUD) requires an annual Action Plan that outlines how CDBG and HOME resources will be utilized. This document includes information regarding funds available, the prioritization process, and recommended awards and projects. The draft 2023 Action Plan was made available 30 days prior to the May 8, 2023, public hearing at www.cityofvancouver.us/cdbg. City Council and public feedback on recommended funding is welcomed and encouraged prior to plan finalization and submittal.

 

CDBG and HOME awards must be consistent with goals and objectives outlined in the City’s 2019-2023 Five-year Consolidated Plan. Goals include:

  • Affordable Housing: Increase and preserve affordable housing opportunity for low-income households and people experiencing homelessness.
  • Public Services: Reduce poverty, increase stability, and prevent and address homelessness for individuals and families. Where possible, support existing City and community initiatives.
  • Economic Development: Increase economic opportunity by supporting small businesses.
  • Public Facilities and Infrastructure: Create and preserve buildings and spaces that serve the public.

 

The City of Vancouver allocates the majority of its CDBG and HOME funding to community partners through an annual competitive application process. A public hearing for City Council to adopt the 2023 Action Plan, which includes the proposed projects and award amounts, is scheduled for May 8, 2023.

2023 Funding Available

Funds available for program year 2023 are listed below. Available funds are subject to change based on entitlement funds from previous years and program income received.

 

CDBG funding

2023 Entitlement Funds $1,392,021

Anticipated program income $ 120,000

Unspent entitlement (previous years) $ 141,337

TOTAL $1,653,358

 

HOME funding

2023 Entitlement Funds $ 791,895

Unspent entitlement (previous years) $ 318,251

TOTAL $1,110,146

 

HOME ARP funding

Entitlement funds (for 6 years) $2,496,110

2023 ESTIMATED SPENDING $ 727,904

 

Application and Prioritization Process

 

The annual application process began in October 2022. Staff invited interested parties to attend a workshop explaining the application process. Applicants submitted preapplications online through ZoomGrants. City staff advanced 36 applications with funding requests totaling just over $6 million. The review committee, composed of community representatives and City staff , completed the application review process. The committee read applications, viewed applicant presentations, scored and prioritized the projects and suggested funding options. This year, the committee’s awarded points were increased and objective scoring was decreased, giving the committee more influence on which applications were granted funding.

 

The average score for each application guided the prioritization of awards. Scoring factors included:

  • Clearly defined scope, goals and outcomes
  • Community needs
  • Community impact
  • Readiness to move forward
  • Long-term financial viability
  • Demonstrated equitable practices and outcomes
  • Community partnerships and collaboration
  • Cost benefit – people/households served and committed match funding
  • Objective risk assessment score
  • Additional points for projects that address homelessness needs

 

Staff then met with the committee to go over funding proposals. A full list of recommended projects and proposed funding is included in the Action Plan.

 

2023 Funding Recommendations – CDBG

 

Funding recommendations support the following priorities:

  • Public services: Programs serving youth programs, youth who are experiencing homelessness, transitional housing services, community outreach events and eviction mediation services.
  • Public facilities: Construction and rehabilitation of a behavioral health care facility.
  • Economic development: Technical assistance for microenterprises and people starting new businesses.
  • Housing services: Case management to help households find or maintain rental housing; paired with HOME-funded rental assistance.
  • City Housing Rehab Set-aside: Low-interest loans to homeowners to assist with home repairs that address health, safety and livability issues.
  • Administration: Staff and administrative costs to carry out the CDBG program and projects. The amount of CDBG funding that may be used for administration is capped by federal guidelines.

 

2023 Funding Recommendations – HOME

 

Funding recommendations for HOME awards support the following priorities:

  • Rental assistance: 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: Single-family home acquisition assistance for first-time buyers and new affordable rental housing. HUD requires 15% of each year’s HOME entitlement to be set aside for an eligible Community Housing Development Organization (CHDO). No CHDO applications were submitted in 2022, so this was carried forward. One 2023 CHDO application was received for multifamily acquisitions, this was recommended for funding with both 2022 and 2023 CHDO set-aside.
  • Unallocated Funding: These funds will be awarded as needed. If funds are unspent in 2023, they will be allocated to future projects.
  • Administration: Staff and administrative costs to carry out the HOME program and projects. The amount of HOME funding that may be used for administration is capped by federal guidelines.

 

2023 Funding recommendations - HOME-ARP

 

The HOME-ARP Plan was reviewed by the public and City Council, but has not yet been approved by HUD. When approved, HOME-ARP funding will need to be expended within 6 years. HOME-ARP applications were accepted as part of the 2023 process in anticipation of the HOME-ARP Plan approval. Funding recommendations for HOME-ARP awards support the following services for people who are homeless or at risk of homelessness, per HOME-ARP rules.

  • Housing Services: Supporting households who are experiencing homelessness or at risk of becoming homeless through navigating the criminal justice system, outreach, and rental assistance.
  • Outreach: Supporting households who are experiencing homelessness and other vulnerable populations through outreach in the community.
  • Administration: Staff and administrative costs to carry out the HOME-ARP program and projects. The HOME-ARP funding used for administration is capped by federal guidelines at 15% over 6 years. The admin costs are estimated to be spent in four years.

Advantage(s)
Project awards will serve Vancouver residents with low to moderate income (LMI), build or preserve housing that will remain affordable, and assist small businesses that are new or struggling. The recommended awards would allow the City to continue making progress toward meeting the five-year projected outcomes identified in the 2019-2023 Consolidated Plan. (Projects funded in one program year may be implemented and/or completed in subsequent program years.)
Disadvantage(s)
None
Budget Impact

Proposed funding is through the city’s federal CDBG and HOME entitlements and program income.  Revenue and expenses have been budgeted adequately in the 2023-24 budget.  If the estimated funding changes drastically, revenues and expenses will be adjusted in the Fall Supplemental accordingly 


Prior Council Review
None
Action Requested

Approve a resolution adopting the proposed 2023 CDBG, HOME, and HOME-ARP funding awards.

 

Samantha Whitley, Housing Programs Manager, 360-487-7952

 


ATTACHMENTS:
Description
Draft of 2023 Action Plan
2023 Action Plan infographic
Workshop Council Memo - 2023 CDBG HOME Action Plan
2023 Action Plan Resolution
Action Plan Presentation