Item Coversheet

Agenda Item - 4.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Lisa L. Kim
Dept.:City Manager 

Dept.: Economic Development 
Subject:

Approval of Fiscal Year 2018-19 Action Plan for the use of Housing and Urban Development funds.  (Action Item)

Date:4/10/2018

OBJECTIVE

To conduct a Public Hearing regarding the 2018-19 Action Plan for the Use of Housing and Urban Development (HUD) funds (Attachment 1), and to approve and direct staff to transmit the 2018-19 Action Plan to HUD.

BACKGROUND

HUD requires a public hearing prior to the approval of the 2018-19 Action Plan in order for the City to receive and utilize federal grant funds. The City must submit the Action Plan to HUD by May 16, 2018. Each year’s Action Plan must address the Priority Objectives adopted by the City Council in the 2015-2020 Consolidated Plan for the Use of HUD Funds. The full Draft Action Plan is available for public review at City Hall and the City’s website until April 10, 2018.

DISCUSSION

Approximately $3.3 million in HUD funds will be available during 2018-19. This budget includes $825,000 in prior year’s HUD funds and new anticipated allocations of $2.5 million in HUD funds.

 

Program plans and funding recommendations for 2018-19 are based upon the Priority Objectives established, and public input received, during the community and housing development needs assessment conducted during the preparation of the 2015-2020 Consolidated Plan. During 2018-19, HUD funds will address a wide range of Garden Grove housing and community development needs:

 

Affordable Housing Improvement and Rehabilitation:  Utilizing $953,000 in HUD funds, the City will rehabilitate 30 single-family homes and assist developers in acquiring and/or rehabilitating seven (7) dedicated affordable rental units.

 

Emergency Service Grants:  $160,857 in funding is recommended for the five HUD approved emergency service programs: Street Outreach, Emergency Shelter, Homeless Prevention, Rapid Rehousing, and Data Collection.

 

Public Services:  Funding in the Community Development Block Grant (CDBG) public service category is strictly limited by HUD regulatory formula to $281,110 during this program year. Staff recommends allocating every dollar available to assist low/moderate income Garden Grove residents.

 

Economic Development:  $150,000 in HUD funds is allocated for a Small Business Loan Program to create six (6) new jobs for low/moderate income Garden Grove residents. 

 

Program Planning and Administration:  Approximately $374,814 in CDBG, HOME, and ESG funds is recommended for staff salary and material costs for program management, project development and monitoring, public communication, HUD reporting, and financial administration. An additional $23,775 is recommended for associated overhead costs incurred by fellow City departments in the administration of HUD funded programs. Staff recommends $34,932 in funding for the Fair Housing Foundation to help the City fulfill its obligation to affirmatively further fair housing.

 

Public Improvements: Approximately $1.3M in current and prior year’s CDBG funds is recommended to address and improve the City’s public infrastructure needs in low and moderate income neighborhoods.

 

The City’s exact allocations for CDBG, HOME and ESG funding are not yet known.  The funding recommendations contained in the Action Plan are estimated based on the prior year’s allocations.  Once the exact allocations are known, the proposed funding amounts for the activities included in the Action Plan will be adjusted accordingly.

 

All HUD citizen participation requirements have been met. Public notices regarding the Draft Action Plan, including an invitation to share comments at this public hearing, were published on or before February 22, 2018 in local English, Spanish, and Vietnamese language newspapers, which exceeds HUD’s 30-day minimum public comment period. 

FINANCIAL IMPACT

The proposed 2018-19 Action Plan will allow the City to access an estimated $2.5 million in new entitlement grants from HUD and $825,000 in prior year’s funds. The allocation of HUD funds effectively leverages competitive grants and the City’s General Funds.

RECOMMENDATION

It is recommended that the City Council:

 

  • Conduct a Public Hearing to receive testimony and accept comments;

 

  • Approve Fiscal Year 2018-19 Action Plan for the use of U.S. Department of Housing and Urban Development Funds;

 

  • Authorize transmittal of the 2018-19 Action Plan to the U.S. Department of Housing and Urban Development; and

 

  • Authorize the City Manager to negotiate and execute related documents and agreements.  Some project-specific agreements may be brought before City Council for approval.

 

 

By:  Nate Robbins, Senior Program Specialist




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
2018 Action Plan4/2/2018Exhibit4-10-1_2018_AAP_DRAFT_v3.pdf