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HomeMy WebLinkAboutReso 47-2020 (20-258)Cityof South San Francisco P.O. Box 711 (City Hall, • 400 Grand Avenue) South San Francisco, CA f City Council ' Resolution: RES 47-2020 File Number: 20-258 Enactment Number: RES 47-2020 RESOLUTION APPROVING AMENDMENTS TO THE CITY' S COMMUNITY DEVELOPMENT BLOCK GRANT 2018-2023 CONSOLIDATED PLAN AND FISCAL YEAR 2019-2020 ANNUAL ACTION PLAN TO REPROGRAM FUNDS FOR ECONOMIC DEVELOPMENT ACTIVITIES TO SUPPORT BUSINESSES IMPACTED BY COVID-19, AND AUTHORIZE A BUDGET TRANSFER TO INCORPORATE THE CARES ACT FUNDS INTO THE FISCAL YEAR 2019-2020 CDBG OPERATING BUDGET. WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires all entitlement communities receiving Community Development Block Grant (CDBG) funds, such as the City of South San Francisco, to prepare and submit a Consolidated Plan every five years to establish a unified, strategic vision for economic development, housing and community development actions; and WHEREAS, the Consolidated Plan encompasses the analysis of local community needs and coordinates appropriate responses to those needs and priorities. The City of South San Francisco adopted the 2018-2023 Five Year Consolidated Plan (Consolidated Plan) on March 14, 2018; and WHEREAS, the Consolidated Plan is carried out through Annual Action Plans which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified in the Consolidated Plan; and WHEREAS, the City must submit an Annual Action Plan to HUD by no later than May 15th of each year during the five-year period (unless otherwise specified by HUD); and WHEREAS, the City adopted the Fiscal Year 2019-2020 Annual Action Plan (Action Plan) on April 24, 2019 and submitted the document to HUD before the required deadline; and WHEREAS, as stated in the City's Citizen Participation Plan, the City shall amend the Consolidated Plan and Annual Action Plan anytime there is a change of CDBG funding of more than $50,000 from one eligible activity to another or to fund a new activity not previously identified in the Annual Action Plan or Consolidated Plan; and WHEREAS, the public will be notified whenever there is a substantial amendment; and WHEREAS, a substantial amendment is to make a change in its allocation priorities or a change in the method of distribution of funds, or to change the purpose, scope, location, or beneficiaries of an activity; City of South San Francisco Page 1 File Number: 20-258 Enactment Number: RES 47-2020 WHEREAS, the 2018-2023 Consolidated Plan and 2019-2020 did not identify Economic Development as a key need in the plans; and WHEREAS, to support local businesses during this time, the City proposes to amend the 2018-2023 Consolidated Plan and 2019-2020 Action Plan to add Assistance to Businesses, including Special Economic Development Assistance as an eligible activity; and WHEREAS, HUD has granted the City's request to waive the citizen participation public comment period for the Consolidated Plan Amendment and the citizen participation reasonable notice and opportunity to comment requirements, which will allow the City to act quickly to serve the communities impacted by COVID-19; and WHEREAS, the City has received funding for Coronavirus Relief pursuant to the CARES Act and the City would need to authorize a budget transfer to incorporate the CARES Act Funds into the 2019-20 operating budget; and WHEREAS, the City Council held a duly noticed public hearing on April 22, 2020 to receive public testimony and comments pertaining to amending the Consolidated Plan and Annual Action Plan to reprogram funds to economic development activities; and NOW, THEREFORE, BE IT RESOVED by the City Council of the City of South San Francisco that the City Council hereby: 1. Approves the Amendments to the 2018-2023 Consolidated Plan and the Fiscal Year 2019- 2020 Annual Action Plan, attached to this Resolution as Attachment 1. 2. Authorizes a budget transfer to incorporate the CARES Act Funds into the Fiscal Year 2019- 2020 CDBG operating budget. At a meeting of the City Council on 4/22/2020, a motion was made by Vice Mayor Addiego, seconded by Councilmember Nicolas, that this Resolution be approved. The motion passed. Yes: 5 Mayor Garbarino, Vice Mayor Addiego, Councilmember Nagales, Councilmember Nicolas, and Councilmember Matsumoto Attest by 404 zeaook� a..., -Is iosa Govea Acosta, City Clerk City of South San Francisco Page 2 CITY OF SOUTH SAN FRANCISCO CONSOLIDATED PLAN 2018-2023 2019–2020 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT Introduction Each year the US Department of Housing and Urban Development (HUD) provides funding for housing and community development programs to the City of South San Francisco , specifically Community Development Block Grant (CDBG) funds. To receive these funds, the City must complete a report every five years called the Consolidated Plan. The purpose of the Consolidated Plan is to identify South San Francisco’s housing and community development needs, priorities, goals, and strategies and to stipulate how funds will be allocated to housing and community development activities over the period of the Consolidated Plan. As stated in the City’s Citizen Participation plan, t he City shall amend the Consolidated Plan and Annual Action Plan anytime there is a change of CDBG funding of more than $50,000 from one eligible activity to another, or to fund a new activity not previously identified in the Annual Action Plan or Consolidated Plan. The public will be notified whenever there is a substantial amendment. A substantial amendment is classified as follows: • To make a change in its allocation priorities or a change in the method of distribution of funds; • To change the purpose, scope, location, or beneficiaries of an activity. Proposed Amendment to the 2018 – 2023 Consolidated Plan In response to the current coronavirus disease 2019 (COVID-19) pandemic, the HUD has allowed Entitlement Jurisdictions to use CDBG funds for a range of eligible activities that prevent and respond to the spread of infectious diseases such as COVID-19. The COVID-19 pandemic has adversely affected businesses and residents in the City of South San Francisco. As a response to the growing need for economic development assistance, the City of South San Francisco has developed a program to provide the funding to address the current crisis. As part of the Coronavirus Relief Bill (CARES Act), additional funding is also anticipated in the current fiscal year to aid those affected by COVID-19. The City has also identified CDBG funds that may be allocated to programs to assist with a COVID-19 response. To implement these programs and to comply with HUD requirements for distribution and use of funds, the City must make substantial amendments to existing plans: • 2018-2023 Consolidated Plan; and • 2019 Annual Action Plan As identified in the City’s Citizen Participation Plan, changes in priorities or goals occur, an amendment is required. In addition to the goals specified in the Consolidated Plan, the City would include an Economic Development goal to provide the economic development assistance to businesses within the City. SP-45 Goals - 91.415, 91.215(a)(4) Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Increase, Maintain, & Improve Affordable Housing 2018 2022 Affordable Housing CDBG Services Area Affordable Housing CDBG: $731,740 Homeowner Housing Rehabilitated: 125 Household Housing Unit 2 Preserve and Improve Public Facilities 2018 2022 Non-Housing Community Development SSF Downtown Tracts 6021, 6022 CDBG Target Area Public Facilities and Infrastructure Improvements CDBG: $731,741 Other: 6 Other 3 Provide Public Services to Improve Quality of Life 2018 2022 Non-Housing Community Development CDBG Services Area Public Services CDBG: $270,181 Public Facility or Infrastructure Activities other than Low/Moderate Income Housing Benefit: 3500 Persons Assisted 4 Support Service- Enriched Homeless Shelters 2018 2022 Homeless CDBG Services Area Homeless Services and Housing CDBG: $67,545 Homelessness Prevention: 250 Persons Assisted Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 5 Planning and Administration 2018 2022 Planning and Admin SSF Downtown Tracts 6021, 6022 CDBG Target Area CDBG Services Area Public Services Affordable Housing Homeless Services and Housing Public Facilities and Infrastructure Improvements CDBG: $450,302 Other: 1 Other 6 Economic Development 2019 2022 Economic Development Citywide Economic Development $600,000 10 Small Businesses Assisted and 10 employees assisted Proposed Amendment to the 2019 – 2020 Action Plan As mentioned above, the City has decided to reallocate some of its available dollars to an economic development assistance program. As part of the Coronavirus Relief Bill (CARES Act), additional funding is also anticipated in the current fiscal year to aid those affected by COVID-19. Funds from the CAR ES Act would be dedicated to public service programs impacted by COVID-19 and economic development assistance program to assist businesses. The City proposes to use funds from housing rehabilitation program and emergency home repair voucher activities in addition to program income funds. CDBG Proposed Revisions are listed in the table below: SPENDING LIMITS FOR CDBG FUNDS PUBLIC SERVICES 2019-2020 Proposed Total Public Services Total 90,600 101,020 CDBG ADMINISTRATION Total Administration Limit 109,376 109,376 Total Administration Limit for CARES Act 58,071 NON-CAPPED CDBG FUNDS CAPITAL IMPROVEMENTS/PUBLIC FACILITIES 2019-2020 Proposed Capital Improvements Projects 306,000 300,000 MINOR HOME REPAIR PROGRAMS 138,250 138,250 CITY SPONSORED ACTIVITIES Housing Rehabilitation Program 45,000 35,000 Debris Box Vouchers 2,000 2,000 Emergency Home Repairs Vouchers 50,000 0 Total City Sponsored Activities 97,000 45,000 ECONOMIC DEVELOPMENT ASSISTANCE PROGRAM Entitlement/Program Income/Uncommitted Funds 200,000 CARES-ACT 230,000 Totals Economic Development Assistance 430,000 A description of the new activities being added to the fiscal year are as follows: - Economic Development Assistance Program The Economic Development Assistance Program is designed to assist businesses through the provision of financial assistance. Financial assistance is in the form of a forgivable no interest loan that is predicated on the maintenance of jobs for moderate- and low-income persons. Maximum assistance under the program is $35,000. One permanent full-time equivalent position for moderate- and low -income persons is required. Public Comments The City will incorporate any comments received during the public comment period.