REPORT TO THE CITY COUNCIL
January 27, 2022
FROM: JENNIFER CLARK, Director
Planning and Development Department
THROUGH: PHIL SKEI, Assistant Director
Planning and Development Department
KAREN JENKS, Housing Manager
Housing and Community Development Division
BY: BRANDON SISK, Senior Management Analyst
Housing and Community Development Division
SUBJECT
Title
HEARING to obtain public comments regarding community needs for consideration in the development of the 2022-2023 Annual Action Plan and HOME-American Rescue Plan Program (HOME-ARP) Allocation Plan for federal funding through the U.S. Department of Housing and Urban Development’s Office of Community Planning and Development (HUD CPD).
Body
RECOMMENDATIONS
In accordance with federal regulations, staff recommends the City Council conduct a community needs public hearing to request public input on the needs of the community with regard to housing and community development activities eligible for funding through the U.S. Department of Housing and Urban Development’s Office of Community Planning and Development (HUD CPD) entitlement and HOME-ARP grants.
EXECUTIVE SUMMARY
The community needs public hearing is an element of the City’s Annual Action Plan and HOME-ARP Allocation Plan processes required in order for the City to receive HUD CPD entitlement grant funding. HUD CPD’s four annual entitlement programs are the Community Development Block Grant (CDBG); HOME Investment Partnerships (HOME); Emergency Solutions Grant (ESG); and Housing Opportunities for Persons with AIDS/HIV (HOPWA). Staff anticipates that the City will receive approximately $11.7 million in Program Year 2022-2023. Funding from these programs must be used to primarily benefit low- and moderate-income persons through eligible activities, must be consistent with the City’s 2020-2024 Consolidated Plan and federal regulations, and must be informed by public participation. The 2022-2023 Annual Action Plan will cover the period from July 1, 2022, through June 30, 2023, and will be the third year of the current Consolidated Plan.
The City will also receive $11.9 million in HOME-ARP funding. These one-time, emergency funds are meant to address the need for homelessness assistance and supportive services through activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. In order to access the HOME-ARP funds, the City must develop a HOME-ARP Allocation Plan that engages a public participation process and must include a public hearing.
BACKGROUND
2020-2024 Consolidated Plan Priorities
The Consolidated Plan was adopted by the City Council on May 21, 2020, and identified the following priorities for funding during the plan period. In accordance with federal regulations, the 2022-2023 Annual Action Plan must be consistent with these priorities:
• Provide assistance for the homeless and those at risk of becoming homeless through safe low-barrier shelter options, housing first collaborations, and associated supportive services.
• Improve access to affordable housing for low‐income and special needs households by partnering with interested developers to increase development of low-income and affordable housing in high opportunity areas, and by promoting the preservation and rehabilitation of existing affordable housing units.
• Promote quality of life and neighborhood revitalization through improvements to current public infrastructure and facilities, and by closing gaps in areas with aging, lower quality, or nonexistent public infrastructure and facilities.
• Provide services to low‐income and special needs households that develop human capital and improve quality of life.
• Provide services to residents and housing providers to advance fair housing.
• Plan and administer funding for community development, housing, and homelessness activities with improved transparency, increased community involvement, and full compliance with federal regulations.
As of the writing of this report, HUD has not announced 2022-2023 annual entitlement funding allocations; however, the City anticipates receiving approximately the following allocations:
• $7,184,218 - Community Development Block Grant (CDBG)
• $3,289,681 - HOME Investment Partnerships (HOME)
• $714,258 - Housing Opportunities for Persons with AIDS/HIV (HOPWA)
• $606,586 - Emergency Solutions Grant (ESG)
Following the community needs public hearing, the City will prepare a consolidated Notice of Funding Availability (NOFA) to request applications from units of local government and eligible community-based organizations for activities to achieve the goals of the Consolidated Plan consistent with the community needs identified during the consultation and public participation phase of the planning processes. The City will provide technical assistance to organizations during the application process in order to help them understand and address the federal regulations and requirements for funding. City staff will then analyze applications and score them according to the criteria published with the NOFA. The results will be reviewed by an ad hoc committee of the City Council, after which the City will prepare a draft Annual Action Plan detailing the proposed activities for 2022-2023 HUD CPD funding. After a 30-day public review period, the draft Annual Action Plan will be brought to City Council to authorize submission to HUD in order to meet the City’s submission deadline of May 15, 2022.
HOME-American Recovery Plan Act (HOME-ARP)
The American Recovery Plan Act (ARPA) was signed into law by President Biden on March 11, 2021. Of the $5 billion allocated to relieve the impact of COVID-19 on persons who are homeless or at risk of experiencing homelessness, the City of Fresno is eligible to receive $11,922,873 million in HOME-ARP funds. To receive these entitlement funds, the City is required to create a HOME-ARP Allocation Plan detailing how it intends to spend HOME-ARP funds. The City must engage in consultation and public participation processes in the development of the allocation plan. Through workshops, this public hearing, and other outreach efforts, the City will determine the needs of the community and how it will use the funds to address the needs of the HOME-ARP qualifying populations. While HUD does not have a deadline for the submission of the HOME-ARP Allocation Plan, the requirements laid out under the HOME-ARP regulations closely mirror those of the development of the Annual Action Plan and it is the City’s intent to ensure these one-time emergency funds immediately assist qualifying populations. Therefore, the processes were merged to ensure the City is able to program and expend the dollars in a timely manner.
The HOME-ARP funds must be used to assist the following “qualifying populations”:
• People experiencing homelessness
• People at risk of experiencing homelessness
• People fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking
• Families requiring services or housing assistance to prevent homelessness
• People who are at greatest risk of housing instability
• Veterans and families that include a veteran family member that meet the criteria for one of the populations described above
HOME-ARP funds can be used to perform four eligible activities:
• Development and support of affordable housing
• Tenant-based Rental Assistance (TBRA)
• Provision of supportive services
• Acquisition and development of non-congregate shelter units
Following the community participation process the City will prepare a consolidated Notice of Funding Availability (NOFA) to request applications from eligible organizations for activities identified as community needs during the consultation and public participation phase of the planning processes. City staff will then analyze applications and score them according to the criteria published with the NOFA. The results will be reviewed by an ad hoc committee of the City Council, after which the City will prepare a draft HOME-ARP Allocation Plan to be published for the required 15-day public review period. The draft HOME-ARP Allocation Plan will be brought to City Council to authorize submission to HUD.
Consultation and Public Participation
In addition to this required public hearing, the City conducted four virtual workshops at different times of the day on January 19th, January 20th, January 24th and January 25th, in order to collect input from as many residents as possible. All workshops and hearings included Spanish and Hmong interpretation. In order to reach as many low- and moderate-income residents as possible while observing practices to reduce the spread of the Coronavirus, the City will continue to use social media, email, radio, and newspaper to promote the public participation and comment opportunities and is also actively encouraging interested parties and community leaders and organizations to share the participation opportunity. It is vital that the public have distinct public comment opportunities for both the Annual Action Plan and the HOME-ARP Allocation Plan.
The City also distributed a questionnaire to local units of government and community-based organizations who have participated in the prior public consultation efforts for HUD CPD plans to request more detailed information relating to how community needs may have changed over the past year. Furthermore, the City is consulting with agencies and service providers whose clientele include the HOME-ARP qualifying populations to identify unmet needs and gaps in housing or service delivery systems. These agencies include the FMCOC; homeless and domestic violence providers service providers; veterans’ groups; public housing agencies; public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities; and any other public agencies that address the needs of qualifying populations.
Schedule of Key Activities:
• January 7, 2022 - Public Notice published in the Fresno Bee
• Week of January 10, 2022 - Meeting invitation flyer and public notice distributed to Housing and Community Development Division mailing list (approximately 500 persons - email HCDD@fresno.gov to join); posted to City of Fresno Facebook and Twitter accounts; published on the website of the City Clerk
• January 19, 2022 at 11:00 A.M. - Virtual Community Needs Workshop #1
• January 20, 2022 at 6:30 P.M. - Virtual Community Needs Workshop #2
• January 24, 2022 at 6:30 P.M. - Virtual Community Needs Workshop #3
• January 25, 2022 at 11:00 A.M. - Virtual Community Needs Workshop #4
• January 27, 2022 at 10:05 A.M. or thereafter - City Council Community Needs Public Hearing for PY 2022 AAP and HOME-ARP Plan
• February 4, 2022 - Consolidated Notice of Funding Availability (NOFA) Released
• Week of February 7, 2022 - NOFA Technical Assistance Webinars
• March 4, 2022 - Applications for Funding Due
• March 18, 2022 - April 19, 2022 - Draft Annual Action Plan public review period
• April 28, 2022 - City Council Annual Action Plan Public Hearing and Consideration
• May 15, 2022 - 2021-2022 Annual Action Plan due to HUD
• May 2022 - Affordable Housing and Substantial Rehabilitation NOFA released
• July 2022 - Affordable Housing and Substantial Rehabilitation applications due
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
Completion of the 2022-2023 Annual Action Plan process will qualify the City to receive an estimated $11.7 million of new entitlement funding. Completion of the HOME-ARP Allocation Plan process will qualify the City to receive $11.9 million in one-time, emergency funding.
Attachments: Annual Action Plan and HOME-ARP Allocation Plan Overview