TITLE
Recommendation to approve the Fiscal Year 2012 Action Plan for the expenditure of Community Development Block Grant, Home Investment Partnership Grant, and Emergency Shelter Grant Funds. (Citywide)
DISCUSSION
The U.S. Department of Housing and Urban Development (HUD) requires the City to develop and submit a five-year Consolidated Plan (Con Plan) and an annual Action Plan that furthers the goals established in the Con Plan, for use of Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), and Emergency Shelter Grant (ESG) funds. The Con Plan was approved by the City Council and HUD in 2005; it was then extended for two years for the decennial census to be completed. The current Con Plan is valid from October 1, 2005, through September 30, 2012. The City Council must 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 Con Plan as amended. This Fiscal Year 2012 (FY 12) Action Plan will be the final Action Plan developed under the current Con Plan.
The following table describes the HUD funding proposed for the FY 12 Action Plan:
The FY 12 Action Plan describes, in detail, the proposed programs and services to be funded during the period of October 1, 2011, through September 30, 2012 (Exhibit A). One challenge faced during the preparation of this FY 12 Action Plan resulted from a 16.5 percent funding cut to the CDBG entitlement and an 11 percent reduction to the HOME grant for FY 12. With a cumulative total of just over $2 million dollars, the impact of these reductions required a careful planning process in order to prioritize what could be funded. For HOME and the majority of CDBG-funded projects, carryover funding (savings from prior years) and strategic program elimination can be used to offset these reductions in FY 12; however, should entitlement reductions persist, additional cuts may be required in FY 13 and beyond.
CDBG funding is intended primarily to assist with brick-and-mortar programs that create permanent, positive change in our neighborhoods. The proposed contents of the current Action Plan strive to meet this goal, despite the limited resources being provided by HUD and other regulatory restrictions. CDBG regulations require a 15 percent statutory limit on public service programs that serve the social needs of our community. Under the regulation, the limit can only be calculated based on the sum of the FY 12 entitlement grant plus the prior year's program income. With the recommended reductions, the Public Service Cap is 14.72 percent, or $1,181,497, leaving only a .28 percent margin. The programs proposed for reduction or elimination were considered because they are no longer viable, have met their objectives, or they fall under the City's Public Service Cap (Exhibit B). The specific programs proposed for reduction or elimination in the FY 12 Action Plan include:
· The Community Police Centers (CPCs) are proposed for elimination in the FY 12 Action Plan. The majority of the activities and services supported by the CPCs will continue at other venues, such as the Mark Twain Community Center and the Neighborhood Resource Center (NRC).
· The FY 12 Action Plan proposes elimination of funding for the Social Services Grant (SSG) program. SSG provides competitively awarded supplemental annual grants to area non-profit agencies based on funding availability.
· Proposed funding for the Multi-Service Center (MSC) has been reduced from $100,000 in FY 11 to $65,000 in FY 12. CDBG funding is used to offset the administrative expense of managing the MSC. Other funding sources for the MSC, including the Continuum of Care, have increased in the past two years.
· Although not funded under the Public Service Cap, funding for the Non-profit Assistance Program (NAP) is proposed for elimination in the FY 12 Action Plan. NAP has provided improvements at deteriorated non-profit facilities, and many beneficiaries have received assistance between two to four times through multiple funding cycles accomplishing the stated goals of the program.
The FY 12 Action Plan also includes recommended funding for several valuable programs that fall under the Public Service Cap, including:
· The FY 12 Action Plan proposes CDBG funding to support the Community Outreach Recreational Enrichment Youth Services (CORE) programs managed by the Department of Parks, Recreation, and Marine. These after school and weekend recreation programs provide critical assistance to youth by offering enrichment activities and ensuring the safety of the City's children.
· Funding under the Public Service Cap is also recommended for Graffiti Removal and Prevention programs. These programs eliminate blight and improve quality of life in our neighborhoods.
· The FY 12 Action Plan proposes funding for the NRC, a one-stop center that assists neighborhoods and community organizations to increase their effectiveness and to improve our neighborhoods.
· Neighborhood Improvement Strategy (NIS) funding is recommended in the FY 12 Action Plan. NIS is a program that coordinates activities, harnesses resources, educates, and empowers local residents to mitigate quality of life issues in our community.
Due to the challenge presented by the significant reductions to the CDBG and HOME entitlements, a rigorous outreach and planning process was undertaken as part of the citizen participation component of the FY 12 Action Plan. These efforts included consultation with the Community Development Advisory Commission (CDAC), which began with a public hearing held on April 20, 2011, and presentations at several community meetings. In addition, the Long Range Planning and Budget Subcommittees of the CDAC conferred in a publicly noticed meeting on June 1, 2011, to discuss the developing Action Plan and the consequences of the federal reductions. On June 15, 2011, the CDAC conducted a second public hearing to solicit comments on the FY 12 Action Plan. During Commissioner Remarks, a member of the Budget subcommittee referenced the June 1, 2011, joint Long Range Planning and Budget committee meeting and stated that the committee members were given the opportunity to review and comment on the proposed budget cuts. Notices regarding the public hearings and the 30-day availability of the draft FY 12 Action Plan were published in the Press Telegram, the Angkor Borei (Cambodian Language) and Impacto (Spanish Language) newspapers.
The June 15, 2011 CDAC public hearing was a culmination of extensive public outreach by City staff to neighborhood and community organizations that benefit from CDBG, HOME, and ESG-funded activities. A summary of the written and oral comments received at this public hearing can be found in Appendix A of the FY 12 Action Plan.
At the conclusion of the public hearing, the Commission voted unanimously to recommend that the City Council approve the draft FY 12 Action Plan as presented.
This item was reviewed by Deputy City Attorney Richard Anthony on June 27, 2011 and Budget Management Officer Victoria Bell on June 29, 2011.
TIMING CONSIDERATIONS
City Council action is requested on July 19, 2011, as the FY 12 Action Plan must be submitted to HUD no later than August 15, 2011, forty-five days prior to the beginning of the new fiscal year.
FISCAL IMPACT
The City will receive $12,791,062 in entitlement funds that will be budgeted in the Community Development Grants Fund (SR 150) in the Department of Development Services (DV) through the FY 12 budget process. These grant funds support activities in seven City departments and pay the salaries of approximately 55 Full Time Equivalents. There is no impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER