DATE: June 4, 2019
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
Delfino E. Neira, Director
Department of Social Services
SUBJECT: 2019-20 Annual Action Plan for Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant Programs
RECOMMENDED ACTION(S):
TITLE
1. Conduct public hearing to receive testimony on proposed County community development, housing, and homeless grant programs; and
2. Approve 2019-20 Annual Action Plan, including use of Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant funds; and
3. Authorize Director of the Department of Public Works and Planning to execute Standard Form 424, Certifications, and Entitlement Grant Agreements for Community Development Block Grant and HOME Investment Partnerships Grant; and
4. Authorize Director of Department of Social Services to execute Standard Form 424, Certification, and Entitlement Agreement for Emergency Solutions Grant.
REPORT
Approval of the recommended actions is necessary for the County’s participation in the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG), HOME Investment Partnerships Grant (HOME), and Emergency Solutions Grant (ESG) entitlement programs. Approval will permit the Departments of Public Works and Planning and Social Services staff to submit the required planning document and applications for entitlement funds to HUD, with no increase in Net County Cost. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may approve the Annual Action Plan as proposed, or make changes as appropriate consistent with the HUD regulations governing each of the grant programs.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The Annual Action Plan for Program Year (PY) 2019-20 serves as the application for Fresno County’s annual allocation of CDBG, HOME, and ESG funds. The anticipated funds and program income include:
CDBG $3,295,188
HOME $1,532,536
ESG $239,466
The County’s Urban County Area for the PY 2019-20 will consist of the unincorporated areas and five participating cities (Fowler, Kerman, Kingsburg, Reedley, and Selma). Participating cities receive allocations of CDBG funds based on the same HUD formula by which the Urban County Program receives its funding.
Below is the program funding for the unincorporated area portion of the CDBG funds, which is allocated each year by the Board to the County’s ongoing programs. The total allocation for the five participating cities (incorporated area portion) is also listed in the table below.
Program CDBG Grant CDBG Grant
Funding Funding
2018-19 2019-20
Sheriff’s Area Based Policing $ 314,203 $ 311,201
Community Based Social Service Programs $ 109,119 $ 108,077
Housing/Commercial Rehabilitation (HARP/FACE) $ 242,550 $ 174,295
Unincorporated Area Public Facility/Infrastructure $ 490,814 $ 500,722
Improvements Projects
Participating Cities Public Facility/Infrastructure $ 761,961 $ 743,167
Improvement Projects
TOTAL $1,918,647 $1,837,462
The two public service programs (Sheriff’s Area Based Policing and Community-Based Social Service Programs) are limited to a combined maximum amount of 15% of the total CDBG incorporated and unincorporated allocation ($2,795,188). The other programs (Housing/Commercial Rehabilitation and Public Facility/Infrastructure Improvement Projects) may be funded at any amount of the total unincorporated area portion of the CDBG funds. A brief description of these programs is included as Attachment A.
The CDBG and HOME programs have an administrative cost allowance that pays for the administrative costs associated with these grant programs. Additionally, up to 7.5% of the ESG funds may be used for administration. The Action Plan includes a breakdown of how the programmatic portion of these grants will be utilized.
DISCUSSION:
The Action Plan is submitted annually and serves as the County’s application for its allocation of entitlement funds from HUD. The 2019-20 Action Plan is the fifth annual plan prepared to implement and achieve the goals and objectives outlined in the five-year Consolidated Plan approved by the Board on May 5, 2015. The plans are required by Federal regulations for the County to receive CDBG, HOME, and ESG funds.
The Departments prepare the Consolidated Plan and each Annual Action Plan, and administer the CDBG and HOME Programs as directed by the Board. In addition, as directed by the Board, the Department of Social Services recommends for Board approval, negotiates, and administers agreements with selected eligible community-based social service programs utilizing CDBG and administers the ESG program.
CDBG Program Funds
Participating cities in Fresno County’s Urban County CDBG Program for the PY 2019-20 will include Fowler, Kerman, Kingsburg, Reedley, and Selma. Participating cities in Fresno County’s CDBG Program receive annual allocations based on the same HUD formula by which the Urban County Program receives its funding from HUD. Cities may also agree to exchange funds between each other on a year-to-year basis to expedite expenditures necessary to meet Federal expenditure requirements. The combined total of annual allocations for the participating cities for PY 2019-20 will be $743,167. Attachment B contains the list of cities’ proposed activities for PY 2019-20 as included in the recommended Action Plan. The recommended PY 2019-20 CDBG funding for the cities’ proposed activities will be provided during the presentation by the Departments.
The Housing and Community Development Citizens Advisory Committee (CAC) has completed its review and ranking of five proposed public facility and infrastructure improvement projects for the unincorporated areas. The recommended amount of CDBG funds for unincorporated area public facility and improvement projects, in accordance with established Board policy, enables the first two projects on the CAC’s recommended list to be funded with the remaining projects placed on a back-up list in priority order, as shown in Attachment C. Projects are then funded from the back-up list in the proposed priority order as funds may become available during the course of the year.
For community-based social services, the Department of Social Services is in the process of issuing a request for proposals for this program. Proposals for funding will be reviewed and recommendations for agencies to receive funding will be brought back to the Board at a later date.
HOME Grant Funds
The HOME Grant funds are used for housing rehabilitation loans, homebuyer (down payment) assistance loans for first-time homebuyers, and affordable housing development loans, serving clients in the unincorporated areas and the five participating cities of Fowler, Kerman, Kingsburg, Reedley, and Selma. These program areas are listed in Attachment D. HOME funds are expended between the programs as applications are received from eligible clients on a first-come first-served basis for projects in the unincorporated areas and five participating cities in order to comply with Federal expenditure requirements. The County is mandated to use at least 15% of the HOME grant funds for affordable housing projects carried out by designated Community Housing Development Organizations (CHDOs). The Board approves the specific project agreements for all affordable housing development projects.
ESG Funds
ESG funds may be used for the following program components: street outreach emergency shelter, homelessness prevention, rapid re-housing, Homeless Management Information System (HMIS), and administrative activities (up to 7.5% of the allocation). ESG funds will be used to provide rapid rehousing through housing search and placement and financial assistance, as well as emergency shelter services.
The Annual Action Plan includes certifications that assure HUD that the County has complied with various guidelines, regulations, and citizen participation requirements. These include conducting two public hearings, affirmatively furthering fair housing, maintaining a drug-free workplace, limiting lobbying, and ensuring that the activities of the Action Plan will principally benefit persons of low- and moderate-income. The County has complied with all of these requirements.
OTHER REVIEWING AGENCIES:
The Consolidated Plan Committee (CPC) conducted a public hearing on housing and community development needs during its meeting on May 29, 2019. This public hearing was in lieu of the public hearing your Board typically conducts to set the funding levels for the unincorporated area programs. The CPC’s public hearing was necessary in order to meet the Federal requirement for two public hearings, as HUD did not provide grant allocation amounts in time for your Board to conduct two hearings prior to the submission deadline.
The CPC includes CAC members from unincorporated area communities and neighborhoods (appointed by your Board), and representatives from the five participating cities.
The Annual Action Plan has also been available for public review and comment at the County Library and on the County’s website at www.co.fresno.ca.us/grants. As of May 7, 2019, no comments have been received.
REFERENCE MATERIAL:
BAI #51, March 26, 2019
BAI #55, September 11, 2018
BAI #57, June 12, 2018
BAI #23, May 5, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachments A - D
On file with Clerk - 2019-20 Annual Action Plan
CAO ANALYST:
Sonia M. De La Rosa