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HomeMy WebLinkAbout04.02.2024@1000 SP CC CDBGTuesday, April 2, 2024 10:00 AM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Manager's Conference Room, 400 Grand Avenue South San Francisco, CA 94080 Community Development Block Grant Standing Committee of the City Council JAMES COLEMAN, Mayor BUENAFLOR NICOLAS, Councilmember Special Meeting Agenda 1 April 2, 2024Community Development Block Grant Standing Committee of the City Council Special Meeting Agenda American Disability Act: The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with Disabilities Act. Please send a written request to City Clerk Rosa Govea Acosta at 400 Grand Avenue, South San Francisco, CA 94080, or email at [email protected]. Include your name, address, phone number, a brief description of the requested materials, and preferred alternative format service at least 24-hours before the meeting. Accommodations: Individuals who require special assistance of a disability -related modification or accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the City Clerk by email at [email protected], 24-hours before the meeting. Notification in advance of the meeting will enable the City of South San Francisco to make reasonable arrangements to ensure accessibility to the meeting. How to submit written Public Comment before the City Council Meeting: Members of the public are encouraged to submit public comments in writing in advance of the meeting via the eComment tab by 8:00 a.m. on the meeting date. Use the eComment portal by clicking on the following link : https://ci-ssf-ca.granicusideas.com/meetings or by visiting the City Council meeting's agenda page. eComments are also directly sent to the iLegislate application used by City Council and staff. Page 2 City of South San Francisco Printed on 4/2/2024 2 April 2, 2024Community Development Block Grant Standing Committee of the City Council Special Meeting Agenda CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS: Comments are limited to items on the Special Meeting Agenda. MATTERS FOR CONSIDERATION Motion to approve the Minutes for the meeting of February 21, 2024.1. Study session regarding the Community Development Block Grant Fiscal Year 2024-2025 Annual Action Plan and Budget Allocation. (Danielle Thoe, Housing Manager and Nell Selander, Economic and Community Development Director) 2. ADJOURNMENT Page 3 City of South San Francisco Printed on 4/2/2024 3 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:24-328 Agenda Date:4/2/2024 Version:1 Item #:1. Motion to approve the Minutes for the meeting of February 21, 2024. City of South San Francisco Printed on 4/1/2024Page 1 of 1 powered by Legistar™4 CALL TO ORDER: 1:00 p.m. ROLL CALL: Mayor Coleman, present Councilmember Nicolas, present AGENDA REVIEW No changes. PUBLIC COMMENTS None. MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes for the meeting of March 15, 2023. Motion - Councilmember Nicolas / Second Mayor Coleman: to approve the minutes. The motion carried unanimously. 2. Study session to review Community Development Block Grant applications and fiscal year 2024- 25 budget allocation. (Danielle Thoe, Housing Manager) Housing Manager Thoe presented the report and solicited feedback from the subcommittee. Councilmember Nicolas requested clarification of current applicants and inquired about Sitike Counseling Center, as the organization had previously reached out to solicit funding. Housing Manager Thoe and Economic and Community Development Director Selander provided an overview of the current applications and funding process, noting increased funding requests for minor home repairs from Rebuilding Together as El Concilio no longer offers those services. City Manager Ranals inquired about program funding outside of CDBG funds. Housing Manager Thoe provided an overview of eligible organizations and funding opportunities. MINUTES SPECIAL MEETING COMMUNITY DEVELOPMENT BLOCK GRANT STANDING COMMITTEE OF THE CITY OF SOUTH SAN FRANCISCO WEDNESDAY, FEBRUARY 21, 2024 1:00 p.m. City Hall, City Manager’s Conference Room 400 Grand Avenue South San Francisco, CA 94080 5 CDBG STANDING COMMITTEE MEETING FEBRUARY 21, 2024 MINUTES PAGE 2 Mayor Coleman suggested minimizing the number of recipients through CDBG to reduce administrative oversight. Economic and Community Development Director Selander provided an overview of the current process and noted that the process has already been streamlined to improve efficiency but would consider a review in the next fiscal year. Housing Manager Thoe provided an overview of public improvement projects and noted that the YMCA requested increased funding to expand services. Staff will review the documentation and solicit additional documentation before moving forward with funding recommendations. Councilmember Nicolas suggested HIP Housing expand outreach throughout the city for additional shared housing options. ADJOURNMENT Being no further business, Mayor Coleman adjourned the meeting at 2:19 p.m. Submitted by: Approved by: Rosa Govea Acosta, City Clerk James Coleman, Mayor City of South San Francisco City of South San Francisco Approved by the CDBG Standing Committee: / / 6 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:24-352 Agenda Date:4/2/2024 Version:1 Item #:2. Study session regarding the Community Development Block Grant Fiscal Year 2024-2025 Annual Action Plan and Budget Allocation.(Danielle Thoe,Housing Manager and Nell Selander,Economic and Community Development Director) RECOMMENDATION Staff recommends that the Community Development Block Grant (CDBG)Subcommittee of the City Council provide feedback regarding the Fiscal Year 2024-25 Annual Action Plan and budget. BACKGROUND The purpose of this study session is to receive feedback from the CDBG Subcommittee regarding the FY 2024- 25 Annual Action Plan. The U.S.Department of Housing and Urban Development (HUD)requires local jurisdictions to prepare an Annual Action Plan (Action Plan)for the upcoming FY 2024-25,to receive funds through the Community Development Block Grant Program.As part of the development of the Action Plan,the City is required to hold two public hearings. The first public hearing was held at City Council on March 27,2024 to obtain citizens'views on housing, community,and economic development needs which will inform the Action Plan.Additionally,for those non- profit organizations seeking CDBG funds,they used this public hearing to make brief comments to City Council regarding their programs.At this meeting,Council expressed support for meeting community needs identified and increasing outreach to ensure community members are aware of the services. The second and final public hearing is scheduled for May 8,2024.At this meeting,Council will consider adopting the FY 2024-25 Action Plan and make final recommendations on CDBG funding allocations. DISCUSSION At present,the City has not been notified of the entitlement allocation for FY 24-25.The federal government has approved the budget for the Department of Housing and Urban Development (HUD)which holds steady the funding appropriated to the CDBG program.Staff have a high level of confidence that the City’s entitlement allocation will be very similar and recommend to budget assuming the same allocation of $457,048. Based on this estimate,staff have developed funding recommendations for public service sub-recipients and programs.Should the final funding allocation very from the estimated amount by 20 percent or more,staff will return to the Subcommittee and/or City Council to revise the funding proposals,in accordance with HUD guidelines. The budget outlined in Attachment 1 includes the anticipated entitlement allocation of $457,048,rollover funding of $100,000,and program income of $7,000.Staff anticipates an estimated total budget of $564,048. Note that the maximum percentage of dedicated funding for Public Services (15%)and Administrative Expenses (20%)are based only on the entitlement allocation and are HUD regulated limitations which cannot City of South San Francisco Printed on 4/1/2024Page 1 of 4 powered by Legistar™7 File #:24-352 Agenda Date:4/2/2024 Version:1 Item #:2. be adjusted. CDBG Programs The following is a summary of currently funded activities under the CDBG program. Public Services ($69,000) Plus $87,800 in City funds In December 2023,the City invited public service agencies to apply for CDBG grant funding.These applications were due on January 18,2024 and the City received 11 applications.The City received two new public service applications from the Magic Tooth Bus and the YMCA Community Resource Center. Cumulatively, the funding requests from all public service agencies totaled $313,388. FY 2024-25 is the start of a new two-year cycle.Organizations (subrecipients)that are approved for grant funding for this first year will submit a more simplified renewal application the second year. Starting in FY 2020-21,in part due the trend of decreasing CDBG allocations and in part in response to challenges meeting HUD income verification requirements,the City provided funding to several organizations through the City’s Housing Fund (Fund 205)instead of CDBG.Considering the public comment and feedback received from City Council at the March 27,2024 Public Hearing,staff recommends continuing to utilize City Housing Funds for eligible activities.This approach will allow the City to provide grants to all of the Public Service grantees that submitted an application except for the YMCA Community Resource Center. The YMCA CRC’s application for CDBG funds requested $136,640,approximately double the City’s total CDBG public services budget.Staff had previously encouraged YMCA staff to apply for CDBG funds,as the City’s Core Service Agency and intake point for so many residents but did not anticipate receiving such an outsized request for funds.The two main requests outlined in the YMCA application are:1)funding for a Cantonese speaking case manager and 2)funding to provide bus passes to clients.While both of these are needed by low-income community members,it is not reasonable for CDBG funds to fully fund a full staff position and bus passes are generally an ineligible use of CDBG funds.Neither of these requests are eligible to be funded by the City’s Housing Fund. After receiving applications,staff reached out to YMCA to better understand the intentions of the ask and the needs of the organization.These kind of follow-up requests for additional information or clarification are typical of the CDBG review process.Through these conversations,staff let YMCA know that their programs would not be recommended for funding through the City’s CDBG program,but that the City wants to continue conversations about other funding sources which may help to provide these services for FY 2024-25 and beyond. To summarize the proposed public services budget is as follows: CDBG Public Services Funds:$69,000 City Housing Funds:$87,800 TOTAL:$156,800 Minor Home Repair Programs ($100,000) Amounts to the Minor Home Repair nonprofits are an effective use of funding to support existing City residents to stay in their homes in a safe and healthy environment.Since the start of the COVID-19 pandemic,all of the City’s minor home repair nonprofits have experienced difficulty meeting their goals and providing service in the community.For FY 2023-24,City Council approved funding for Center for Independence of Individuals City of South San Francisco Printed on 4/1/2024Page 2 of 4 powered by Legistar™8 File #:24-352 Agenda Date:4/2/2024 Version:1 Item #:2. the community.For FY 2023-24,City Council approved funding for Center for Independence of Individuals with Disabilities (CID),Rebuilding Together Peninsula -Safe at Home,Rebuilding Together Peninsula - National Rebuilding Day,and El Concilio.Shortly before the start of FY 2023-24,El Concilio informed staff that the organization was discontinuing their minor home repair program and would not be utilizing the funds during FY 2023-24.The three other minor home repair programs all received funding during FY 2023-24,and all three have also submitted applications to the City for FY 2024-25 funding.During this year,staff have seen these programs rebound well and have greater confidence that the programs will be able to meet or come close to meeting their goals of total households served. After submitting its application,staff of Rebuilding Together Peninsula sent an email to the City supplementing its application.This email noted the increased cost of materials and staff time that have driven up costs for their projects.It made the case that their funding award be increased to $117,403 for Safe at Home (a 112%increase from the FY 2023-24 award of $55,250)and $44,805 (a 184%increase from the FY 2023-24 award of $15,740).Staff understand the reality of increased costs of providing these minor home repair services,but also wanted to review the program performance holistically.Both Rebuilding Together programs have experienced issues with proper and timely reporting as well as accurate review and documentation of the homes they submit applications to work on.Staff recommend providing some increase to the funding to both Rebuilding Together programs,though not as high a funding level as requested,and to also require a higher level of performance from the program.If the increased investment in these programs does not come with an increased level of performance,staff will recommend reducing the allocation to these programs in FY 2025-26,the second year of public services awards. Public Improvement Programs ($277,248) During the Notice of Funding Availability (NOFA)application process,the City did not receive any applications for public improvements projects.These types of projects are the bulk of what CDBG funds in the City have typically been spent on.Staff still recommend these funds for public facilities projects and are working to identify City projects which may be able to utilize the funds.Staff believe that the lack of response to the NOFA in this category is due to both the complications of contracting and reporting requirements that are required to utilize CDBG funds as well as staff turnover in the Housing Division which has resulted in fewer connections to other City staff and projects.New Housing Division staff are working on making connections with staff in other City departments and are developing a list of capital and facilities projects that may be eligible for funding.It is recommended that the City provide funding for activities in this category.When a project or projects are identified staff will be required to return to Council for approval of any contract which exceeds $150,000 so Council will stay informed as to how these funds will be utilized. Planning and Administration ($92,800) The CDBG program allows the City to spend up to 20%of its grant award on program Planning and Administration.Given the anticipated award amount,staff propose to utilize the full budget of $92,800 for these expenses. Economic Development Activities ($25,000) During the community outreach process to draft the City’s 2023-2027 Consolidated Plan,the City heard feedback regarding the need to support economic development,job creation,job training,and entrepreneurs. Unfortunately,the feedback received was not included as a goal of the City’s Consolidated Plan.So,while City Council preliminarily approved an allocation of funding to Renaissance Entrepreneurship Center (if funds should allow), the City was unable to allocate CDBG funds to Renaissance. Recognizing the ongoing need within the community for economic development support,staff have begun the City of South San Francisco Printed on 4/1/2024Page 3 of 4 powered by Legistar™9 File #:24-352 Agenda Date:4/2/2024 Version:1 Item #:2. Recognizing the ongoing need within the community for economic development support,staff have begun the process of amending the City’s Consolidated Plan to allow funding for economic development activities.Once that process is completed,and economic development activities may be included in the City’s 2024-25 Annual Action Plan,staff recommend providing funding to Renaissance Entrepreneurship Center in the amount requested - $25,000. FISCAL IMPACT Holding this study session has no fiscal impact on the General Fund.Funding recommendations made by the CDBG Subcommittee,if approved by the City Council,will have impacts to the CDBG budget and the City’s Housing Fund (Fund 205) as described above. RELATIONSHIP TO STRATEGIC PLAN By completing the HUD-mandated public process,including the required Annual Action Plan,the City will be able to secure its allocation of CDBG funds for the coming year.This,in turn will advance several components of the City’s Strategic Plan, in particular: ·Promoting Quality of Life by provide funding for social services and public projects to support residents ·Promote a balanced mix of housing options by helping fund nonprofits that work to address various affordable housing-related issues ·Promote financial stability by securing federal grant funds which mean a large portion of funded services do not rely on the City’s General Fund ·Prioritize community connections -by providing information to local residents to help strengthen community relationships. CONCLUSION Staff recommends that the Community Development Block Grant (CDBG)Subcommittee of the City Council provide feedback regarding the Fiscal Year 2024-25 Annual Action Plan and budget. Attachments: 1.Budget FY 2024-25 2.Funding Recommendations FY 2024-25 City of South San Francisco Printed on 4/1/2024Page 4 of 4 powered by Legistar™10 CDBG FY 24-25 (Estimate) Entitlement Amount 457,048 Prior Years Uncommitted Funds (Estimated Rollover)100,000 Program Income Estimate 7,000 Total 564,048 HOME HOME Administrative Funds 13,400 ESTIMATED TOTAL FUNDS (ALL SOURCES)577,448 PUBLIC SERVICES Estimate 15 % of FY 22-23 Entitlement 69,000 Total Public Service Limit 69,000 CDBG ADMINISTRATION 20% of FY 224-25 Entitlement 91,410 20% of Estimated Current Year Program Income 1,400 Total Administration Limit 92,810 Total Non-Administrative Funds 471,238 PUBLIC IMPROVEMENTS/PUBLIC FACILITIES Estimate Public Improvements Projects 277,248 MINOR HOME REPAIR PROGRAMS 100,000 Total Budgeted CDBG Funds 539,058 Unbudgeted CDBG Funds 24,990 NON-RESTRICTED CDBG FUNDS Attachment 1 Budget FY 2024-25 FUNDS AVAILABLE SPENDING LIMITS FOR CDBG FUNDS NOTE: All FY 24-25 Funds are estimates, final funding pending HUD allocations. Community Development Block Grant Program 11 ATTACHMENT 2 Organization Program FY 23-24 Amount Received FY 24-25 Amount Requested Staff Recommendation CDBG Subcommittee Recommendation CORA Safe House, Emergency Shelter program 21,500$ 25,000$ 20,000$ Friends for Youth Mentoring Services 14,760$ 12,500$ 12,200$ HIP Housing Affordable Housing Programs 12,000$ 12,000$ 10,000$ Legal Aid Home Savers 12,300$ 12,300$ 12,300$ Life Moves Shelter Operations, Family Crossroads 26,250$ 28,000$ 26,000$ Magic Tooth Bus Oral Health Services -$ 20,048$ 15,000$ Ombudsman Services Ombudsman Services 20,000$ 20,000$ 15,000$ Rape Trauma Services Center Sexual Assault Services for Children and Youth 14,100$ 15,000$ 14,500$ Samaritan House Safe Harbor shelter 18,000$ 19,800$ 19,800$ StarVista Transitional Housing Placement Plus 11,000$ 12,100$ 12,000$ YMCA Community Resource Center -$ 136,640$ -$ Subtotal 149,910$ 313,388$ 156,800$ $ 69,000 $ 69,000 $ 100,000 $ 87,800 CID Housing Accessibility Modification 10,000$ 10,000$ 10,000$ Rebuilding Together Peninsula National Rebuilding Day 15,750$ 44,805$ 25,000$ Rebuilding Together Peninsula Safe at Home 55,250$ 117,403$ 65,000$ Subtotal 81,000$ 172,208$ 100,000$ $ 100,000 Estimated Housing Trust Funds Available for Public Service Activities: CDBG- Category 3: MINOR HOME REPAIR PROGRAMS Estimated CDBG Funds Available for Minor Home Repair Programs: Community Development Block Grant Program FY 24-25 Applications and Recommendations CDBG- Category 1: PUBLIC SERVICE GRANTS Estimated CDBG Funds Available for Public Service Activities: 12 ATTACHMENT 2 City of South San Francisco CDBG Administration 92,800$ $ 92,800 Organization Program FY 23-24 Amount Received FY 24-25 Amount Requested Staff Recommendation CDBG Subcommittee Recommendation Project Sentinel Fair Housing 14,971$ 16,283$ 13,400$ $ 13,400 Total Funds Requested 594,679$ Total Estimated Funds Available 275,200$ ** Pending input from CDBG Subcommittee HOME FUNDS: FAIR HOUSING ACTIVITIES Total Estimated HOME Funds Available for Fair Housing Activities: CDBG - Category 6: ADMINISTRATION Estimated CDBG Funds Available for CDBG Administration: 13