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File #:
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16-0605
Version:
1
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Name:
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DS - FY 17 CDBG Action Plan
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Type:
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Agenda Item
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Status:
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Approved
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On agenda:
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7/5/2016
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Final action:
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7/5/2016
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Title:
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Recommendation to approve the Fiscal Year 2017 Action Plan, the First Substantial Amendment to the Fiscal Year 2016 Action Plan, and the Third Substantial Amendment to the Fiscal Year 2015 Action Plan for the expenditure of Community Development Block Grant, Home Investment Partnership Grant, and Emergency Solutions Grant Funds; and
Authorize City Manager, or designee, to execute all necessary documents with the United States Department of Housing and Urban Development to receive these funds, execute agreements necessary to implement and comply with related federal regulations, and expend these funds for the purposes of implementing the program. (Citywide)
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TITLE
Recommendation to approve the Fiscal Year 2017 Action Plan, the First Substantial Amendment to the Fiscal Year 2016 Action Plan, and the Third Substantial Amendment to the Fiscal Year 2015 Action Plan for the expenditure of Community Development Block Grant, Home Investment Partnership Grant, and Emergency Solutions Grant Funds; and
Authorize City Manager, or designee, to execute all necessary documents with the United States Department of Housing and Urban Development to receive these funds, execute agreements necessary to implement and comply with related federal regulations, and expend these funds for the purposes of implementing the program. (Citywide)
DISCUSSION
The United States Department of Housing and Urban Development (HUD) requires the City to develop and submit a Five-Year Consolidated Plan (Consolidated Plan) and an annual Action Plan that furthers the goals established in the Consolidated Plan, for use of Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), and Emergency Solution Grant (ESG) funds. The current Consolidated Plan was approved by the City Council and HUD in 2012, and is valid through September 30, 2017. HUD requires that the City Council review and approve an annual Action Plan that describes how HUD funds will be used to support programs and services, which principally benefit low- and moderate-income residents, consistent with the Consolidated Plan as approved.
The attached Fiscal Year 2017 (FY 17) Action Plan, First Substantial Amendment to the Fiscal Year 2016 (FY 16) Action Plan and Third Substantial Amendment to the Fiscal Year 2015 (FY 15) Action Plan (Exhibit A) describe in detail the proposed programs and services to be funded during the period of October 1, 2016 through September 30, 2017. The following table summarizes the funding proposed for the FY 17 Action Plan:
FY 17 Action Plan Budget
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Available Funds |
CDBG |
HOME |
ESG |
TOTAL |
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New Entitlement |
$5,456,484 |
$2,213,394 |
$507,817 |
$8,177,695 |
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Program Income |
$80,000 |
$1,000,000 |
$0 |
$1,080,000 |
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Total Available Funds |
$5,536,484 |
$3,213,394 |
$507,817 |
$9,257,695 |
Under previous HUD directives, the City was allowed to reprogram unspent funds (i.e., roll over) from previous Action Plans as part of the development of subsequent Action Plans. However, under recent HUD directives, the ability to roll over these funds into subsequent Action Plans has been eliminated. Instead, HUD now requires unspent funds to be reprogrammed and accounted for by individual Action Plan through defined Amendments. As such, the FY 17 Action Plan will not include unspent reprogrammable funds from prior years’ Action Plans. These funds will be reallocated, through an Amendment, and continue to be accounted for and spent under the amended FY 16 and FY 15 Action Plans. The table below shows the reallocation of remaining FY 16 and FY 15 funds contained in the Amendments:
FY 16 Action Plan First Substantial Amendment
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Program |
Reduced Amount |
Proposed Program |
Increased Amount |
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Home Improvement Rebate Program |
($108,762) |
Economic and Infrastructure Development |
$510,225 |
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Program Delivery |
($12,015) |
Neighborhood Business Investment |
$157,501 |
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Neighborhood Resource Center |
($9,275) |
Business Revitalization Program/Corridor |
$367,142 |
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Neighborhood Leadership Program |
($1,202) |
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Code Enforcement |
($315,463) |
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Interim Assistance |
($106,814) |
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Neighborhood Partners Program |
($52,647) |
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Urban Forestry Program |
($11,031) |
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Program Administration |
($417,659) |
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Total Proposed to be Reallocated |
($1,034,868) |
Total |
$1,034,868 |
FY 15 Action Plan Third Substantial Amendment
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Program |
Reduced Amount |
Proposed Program |
Increased Amount |
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Neighborhood Resource Center |
($2,524) |
Acquisition for Open Space Development (14th Street Park) |
$1,000,000 |
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Neighborhood Leadership Program |
($4,078) |
Public Facility Improvements and ADA Compliance (Drake Park and Chavez Park) |
$363,317 |
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Technical Business Assistance |
($4,400) |
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Revolving Loan |
($9,662) |
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Neighborhood Business Investment |
($69,627) |
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Business Revitalization Program/Corridor |
($132,997) |
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Program Administration |
($199,047) |
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ED/Infrastructure Improvement |
($940,982) |
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Total Proposed to be Reallocated |
($1,363,317) |
Total |
$1,363,317 |
HUD requires certain prescribed timeframes for the development of Action Plans. During the initial community outreach period, staff conducted several neighborhood meetings to engage the community in the planning process for the draft FY 17 Action Plan. Attendees responded to surveys that asked them to propose and prioritize projects and programs for implementation through the FY 17 Action Plan. (The results of the surveys are provided in Exhibit A.) On April 20, 2016, the Long Beach Community Investment Company (LBCIC) conducted a public hearing to review and solicit public comment on the development of the FY 17 Action Plan. The draft Action Plan was released on May 16, 2016.
A second public hearing was conducted by the LBCIC on June 15, 2016. Notices regarding this second public hearing and the availability of the draft Action Plan and Amendments were posted on the City website for public review 30 days prior to the second public hearing. Advertisements were published in the Long Beach Press-Telegram, Impacto USA, and Khmer Post announcing the availability of the draft Action Plan and Amendments and details of the public hearing. In addition, several hundred stakeholders received an email notice about the public hearing and the availability of the draft Action Plans for review and comment. Staff also conducted additional meetings in different CDBG-area neighborhoods. At the conclusion of the public hearing, the LBCIC Board voted to recommend that the City Council approve the draft FY 17 Action Plan, and Amendments to the FY 16 and FY 15 Action Plans.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on June 14, 2016 and by Budget Analysis Officer Rhutu Amin Gharib on June 20, 2016.
TIMING CONSIDERATIONS
City Council action is requested on July 5, 2016, as the FY 17 Action Plan must be submitted to HUD no later than August 15, 2016, 45 days prior to the beginning of the new fiscal year.
FISCAL IMPACT
In FY 17, the City will receive $8,177,695 in CDBG, HOME, and ESG entitlement funds and an estimated $1,080,000 in Program Income. These funds will be budgeted in the Community Development Grants Fund (SR 150) in the Development Services Department (DV) through the annual budget process. These grant funds generate a broad, positive impact on job creation and retention within the community. Based on a HUD formula for job creation, the direct infusion of entitlement funds into programs that support local businesses, and spur infrastructure and housing improvements will generate an estimated 135 jobs within the community.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER
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