REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
BY: BRANDON SISK, Senior Management Analyst
Housing and Community Development Division
SUBJECT
Title
Actions pertaining to the 2021-2022 Annual Action Plan:
1. HEARING to obtain public comments regarding Substantial Amendment 2021-01 and the Draft HOME-American Rescue Plan (HOME-ARP) Allocation Plan; and
2. ***RESOLUTION - Adopting and approving the submission of Substantial Amendment 2021-01 to the 2021-2022 Annual Action Plan and the HOME American Rescue Plan (HOME-ARP) Allocation Plan to the U.S. Department of Housing and Urban Development (HUD) for application of $11,922,873 HOME-ARP program funds; approving allocations to activities in accordance therewith; and Authorizing the City Manager or designee to sign all implementing documents required by HUD and as approved to form by the City Attorney (Subject to Mayor’s Veto)
Body
RECOMMENDATIONS
Staff recommends the City Council conduct a public hearing and thereafter adopt Substantial Amendment 2021-01 to the 2021-2022 Annual Action Plan and the Draft 2021-2022 HOME-ARP Allocation Plan in application to the HUD CPD entitlement HOME-ARP grant program; and authorize the City Manager to sign all reasonably required implementing documents, instruments, and funding agreements required by HUD and as approved to form by the City Attorney.
EXECUTIVE SUMMARY
As part of the American Rescue Plan Act of 2021, HUD CPD has allocated $11.9 million in additional entitlement funds to the City of Fresno (City) through HOME-ARP to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations. In order to receive the funds, the City implemented a citizen engagement, planning, and application process beginning in January 2022 to develop the HOME-ARP Allocation Plan which it must submit to HUD for approval. The plan will be deemed approved 45 days after HUD receives the submission, unless HUD notifies the City before that date that the plan is disapproved.
BACKGROUND
2021-2022 HOME-ARP Allocation Plan
The American Rescue Plan Act of 2021 (ARPA) appropriated $5 billion through HUD CPD’s HOME program to participating jurisdictions that qualified for FY 2021 HOME funds. The HOME-ARP funds are intended to make targeted, strategic investments in housing and other assistance for people experiencing homelessness or who are at imminent risk of homelessness, and other vulnerable populations.
On September 23, 2021, HUD CPD notified the City that it had been allocated $11,922,873 in HOME-ARP funding. In order to qualify for and receive these funds, the City is required to engage in a consultation and public participation process and develop a HOME-ARP Allocation Plan. The HOME-ARP Allocation Plan must detail the activities proposed for funding, include a needs assessment and gap analysis, and describe how it will use the funds to address the needs of HOME-ARP qualifying populations.
To meet these requirements, the City conducted four virtual community needs workshops to introduce residents to the HOME-ARP Allocation Plan, and to request specific input on projects and activities to be considered for funding. Virtual one-on-one meetings were conducted with stakeholders representing the Fresno/Madera Continuum of Care, the Fresno Housing Authority, homeless service providers, domestic violence service providers, public and private organizations that address the needs of qualifying populations, private organizations that address civil rights and fair housing, and public organizations that address the needs of people with disabilities. Moreover, a community needs public hearing was conducted at the January 27, 2022, meeting of the City Council. Additionally, a community needs questionnaire was distributed to all organizations who had participated in the development of the Consolidated Plan or Annual Action Plan over the past three years. Spanish and Hmong interpretation was provided at all public meetings and hearings.
Based on the community’s input, feedback from stakeholders, and the needs assessment and gap analysis, staff drafted the HOME-ARP Allocation Plan which proposes to allocate the HOME-ARP funds to eligible activities as follows: $3,111,481 for Supportive Services, $2,011,481 for Acquisition and Development of Non-Congregate Shelter, $5,011,481 for Development of Affordable Rental Housing, and $1,788,430 for Administration and Planning. The HOME-ARP Allocation Plan was reviewed with an ad hoc committee of the City Council on April 19, 2022, and was published for a 15-day public review from April 21, 2022, through May 6, 2022. Public comments may be found in the HOME-ARP Allocation Plan Appendix A: Citizen Input and Public Comment.
On May 18, 2022, staff met with the CDBG Sub-committee of the City Council to discuss the proposed activities for funding included in the draft HOME-ARP Allocation Plan. Committee members expressed a concern that the proposed allocation for Supportive Services was too high given that the funds are one-time and not on-going. The committee expressed a desire to possibly move a portion of the funds planned for Supportive Services to the Development of Affordable Rental Housing and/or the Acquisition and Development of Non-Congregate Shelter. Because the need for wrap-around supportive services was so frequently identified as a need during the community engagement process, staff maintain the recommended allocation of $3,111,481 for Supportive Services. Based on the feedback from the committee members, staff will cap the amount of expenditures for Supportive Services to no more than $400,000 annually to ensure that there is sufficient funding available to provide wrap-around services for the duration of the grant funding, through September 30, 2030.
Following HUD’s approval of the HOME-ARP Allocation Plan, staff will issue Notices of Funding Availability for the various activities funded. After proposals have been reviewed and assessed, staff will return to Council for approval of proposed subrecipient agreements.
The deadline to expend the $11,922,873 in HOME-ARP program funds is September 30, 2030.
Citizen Participation
A list of meeting, public review, and key notice dates is provided below. An exhaustive list of promotional and outreach activities is provided in the appendices of the HOME-ARP Allocation Plan.
• January 7, 2022 - Notice of upcoming meetings and planning process published in the Fresno Bee, City Clerk website, Housing and Community Development Division (HCDD) website, emailed to a list of 500+ persons who have requested to receive updates from HCDD, and posted to social media
• January 7, 2022, through January 15, 2022 - Workshops and public hearings promoted on social media; through digital flyers distributed by City Council District Offices, and to Fresno and Central Unified school district students and parents; on media calendars maintained by KMPH, KFSN, and YourCentralValley; and through email
• January 19, 20, 24, & 25 - Virtual community needs workshops conducted on Zoom platform
• January 27, 2022 - Community needs public hearing conducted at City Council meeting
• April 21, 2022 - Draft HOME-ARP Allocation Plan published for public review and comment to the website of the City Clerk and HCDD; availability was promoted on social media, by email, and it was distributed to community centers and public libraries
• May 6, 2022 - End of written public comment period
• May 26, 2022 - City Council public hearing & consideration of Substantial Amendment 2021-01 and the HOME-ARP Allocation Plan
• July 2022 - Target release of HOME-ARP NOFA
ENVIRONMENTAL FINDINGS
This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378. These plans, strategies and studies are an exempt activity under HUD NEPA Requirements (24 CFR 58.34 (1).
LOCAL PREFERENCE
Local preference is not applicable because of the use of federal funding.
FISCAL IMPACT
Adoption of Substantial Amendment 2021-01 and the HOME-ARP Plan is required to allow the City to receive $11,922,873 of new entitlement funding.
Attachments: Resolution
Substantial Amendment 2021-01
Draft HOME-ARP Allocation Plan