Item Coversheet

Agenda Item No: 7.






AGENDA REPORT

DATE:

May 4, 2021 

TO:

Mayor and City Council

FROM:

Stefan T. Chatwin, City Manager


SUBJECT:Public Hearing;

and Resolution 2021-­84 of the City Council of the City of Fairfield Approving the Community Development Block Grant Adoption of the FY 2021-­2022 Annual Action Plan; 

and Resolution 2021-85 of the City Council of the City of Fairfield Approving the Community Development Block Grant Substantial Amendment to the FY 2019­-2020 Annual Action Plan to Reprogram CARES ACT Funds

RECOMMENDED ACTION 
Hold public hearing and adopt resolutions.
STATEMENT OF ISSUE 
Staff is asking City Council to adopt resolutions for the following two actions: 1) Approving the Fiscal Year (FY) 2021-2022 Community Development Block Grant (CDBG) Annual Action Plan funding allocations; and 2) Approving the Substantial Amendment to the FY 2019-2020 Annual Action Plan to reprogram $151,332 in CARES ACT funds for operations of the Ohio Street Transitional Housing for homeless individuals at high risk for COVID-19.
DISCUSSION

FY 2021-20­22 CDBG Annual Action Plan

Housing and Urban Development (HUD) awards the City of Fairfield with CDBG funding annually using a standardized formula for entitlement jurisdictions. The entitlement amount for FY 2021-2022 is $834,203. Recommended expenditure of these funds are as follows:

 

1) Administrative costs for the City to operate the program and comply with HUD regulations. Program administration is capped at 20% of the entitlement award. The amount available for program administration for FY 2021­22 is $166,841; however, the CDBG Advisory Committee (Committee) is recommending that 18% of the grant be utilized towards CDBG Administration.

2) Public Service grants to assist Low- and Moderate-Income (LMI) Fairfield residents with supportive services. Public Service activities are typically implemented by local nonprofit organizations and provide social supportive services to LMI persons. In accordance with HUD regulations, the City must limit the allocations in the Public Service category to no more than 15% of the total entitlement award. The amount available for Public Services for FY 2021-20­22 is $125,130. Additionally, HUD regulations allow the City to utilize 15% of the calculation from program income that the City has received to go towards Public Service projects. The City has received $121,248 in program income, therefore allowing an additional $18,187 to be allocated towards public service projects. The total allocation for Public Service projects for FY 2021-2022 is $143,317.

The City requested proposals from qualified public service agencies in January 2021 and received several qualified proposals in the service areas of homelessness, senior services, violence prevention and youth services. The Committee scored the applications based on fiscal sustainability, agency capacity, partnership coordination, and risk assessment among other criteria. After a lengthy review and ranking process, the Committee recommends awarding funds to the following agencies in FY 2021-20­22:

 

PUBLIC SERVICE GOALS AND STRATEGIES

AGENCY

PROGRAM

SERVICE AREA

AMOUNT

Shelter Inc.

Case Management

Homelessness

$50,000

Our Lady Mount Carmel

St. Vincent De Paul

Homelessness

$7,200

City of Fairfield - Homeless Services Division

Our Way Home

Homelessness

$50,000

Meals on Wheels

Elder Nutrition Program

Senior Services

$15,000

Fairfield Police Activity League (PAL)

Move Into

Youth Services

$12,000

The Leaven

Tutoring Program

Youth Services

$9,117

 

 

Total:

$143,317

 

 

3) Non-Public Service projects. Council adopted a Neighborhood Revitalization Initiative (NRI) on August 5, 2017, outlining comprehensive community objectives and strategies within targeted neighborhoods that improve quality of life. A critical component of the NRI is seeking community input on prioritizing neighborhoods and projects to target CDBG funds.

The CDBG project recommendations were evaluated by the Committee using the City's annual review procedures outlined in the NRI; CDBG National Objectives; community input; and the Five-year Consolidated Plan adopted for FY 2017­ 2022, as a guideline for prioritizing project funding recommendations. Based on the above evaluation and recommendation resources, the Committee proposes to allocate FY 2021-20­22 CDBG funds to the following eligible activities:

 

NON-PUBLIC SERVICE GOALS AND STRATEGIES

AGENCY

PROGRAM

AMOUNT

Shelter Inc.

Kitchen build/dining hall

$392,232

City of Fairfield Public Works Department

Sidewalk repair

$150,000

 

Total

$542,232

 

In addition to the Public Service and Non-Public Service funding for the entitlement grant, the Committee recommends $300,000 of the Housing Revolving Loan Fund to be used for the City’s Owner-occupied Rehabilitation Program. The City also recommends $235,981 of the Economic Development Revolving Loan Fund to be used for the City’s Economic Development Microloan Program to support small businesses in the Neighborhood Revitalization Service Area.

FY 2019­-2020 CDBG Annual Action Plan Substantial Amendment

The City will make a Substantial Amendment to the FY 2019­-2020 Annual Action Plan to reprogram $151,332 of CDBG CARES ACT Coronavirus Response Round 1 (CV1) funds to a recommended activity. This shift of funds is due to a CV1 recipient no longer having use for the allocated funds. These funds must be utilized to plan, prepare, and respond to COVID-19.

 

In June 2020, NorthBay Healthcare was allocated $250,000 in CARES ACT funding to respond to COVID-19 through the purchase of a rapid testing machine, Personal Protective Equipment (PPE), and the formation of an outreach team for senior facilities within the City of Fairfield. Although NorthBay Healthcare was able to purchase the rapid testing machine, they have found that they no longer have a need for the additional funds because other resources have become available that have replaced their initial request.

The remaining $151,332 of the allocated grant can be utilized for other COVID-19 related projects under the CDBG Program.

In December 2020, the council approved $150,000 in COVID-19 funds for the operations of the Ohio Street Homeless Transitional Housing Project. The project provides homeless housing for individuals with higher risk of COVID-19 infection/complications, including those who are above 65 years of age, and those with severe chronic conditions. Housing and services will be delivered from four buildings located at 710 and 724 Ohio Street, and 311 and 315 Jefferson Street. Emergency housing would be provided at 710 Ohio Street (two bedrooms, two baths, and a den) and 315 Jefferson (six bedrooms and three baths.) Transitional housing, using the Tenant-Based Rental Assistance (TBRA) program would be provided at 311 Jefferson Street (three units, each with two bedrooms and two bathrooms). Services and office space would be provided from 724 Ohio Street (one bedroom, one bath, plus den). Targeted services for the project would include case management, job training, mental health and substance abuse services, meals, financial management and health care services.

The additional allocation of $151,332 towards this project would help ensure the first two years of operational costs for the project are covered.


FINANCIAL IMPACT
The FY 2021­-2022 HUD award total of $834,203 will be processed as reimbursements. This includes up to $166,841 for administrative costs for the City to administer the CDBG program. Loans generated by the Owner-occupied Rehabilitation Program, and Economic Development Microloan program, for a total $535,981 will also be processed as reimbursements.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION 

The following recommendations were considered:

• On January 27, 2021, a Notice of Funding Availability (NOFA) for FY 2021-2022 CDBG Funding was published in the local newspaper and the City’s webpage in three languages; English, Spanish, and Tagalog.

• On January 29, 2021, the City held a grant “kickoff” meeting to discuss the NOFA application and the CDBG Program.

• On March 1, 2021, the City held a public meeting with the CDBG Advisory Committee.

• On March 15, 2021, the City held a public meeting with the CDBG Advisory Committee to discuss the NOFA applications.

• On March 18, 2021, the City held a public meeting with the CDBG Advisory Committee to hear presentations from the NOFA applicants.

• CDBG proposals were received and reviewed by the City's CDBG Advisory Committee through a review and rank process to make recommendations to the council for funding. Public comments, if any, are noted in the plan.

• The proposed projects for FY 2021-2022 and Substantial Amendments were made available for public comment online, at City facilities, and at the Fairfield Library.

• On April 2, 2021, a Notice of Public Hearing and Public Comment Period was published in the local newspaper and City’s webpage in three languages; English, Spanish, and Tagalog.



ALTERNATIVE ACTION 
The council can choose not to approve the two proposed resolutions; however, failure to submit an approved Annual Action Plan to HUD by May 15, 2021, will result in the automatic loss of the FY 2021-2022 CDBG allocation.

Failure to reprogram and submit a Substantial Amendment to the 2019-2020 Annual Action Plan may result in a loss of CARES Act funds.
STAFF CONTACT 
LaTanna Jones, Director of Housing Services
(707) 428­-7647
ljones@fairfield.ca.gov

COORDINATED WITH 

ATTACHMENTS:
Description
Proposed Resolution AAP FY2021-2022
Proposed Annual Action Plan (AAP)
Proposed Resolution AAP Amendment FY 2019-2020
REVIEWERS:
ReviewerActionDate
Jones, LaTannaApproved4/22/2021 - 9:05 PM
Alexander, AmberApproved4/26/2021 - 12:41 PM
Alexander, AmberApproved4/26/2021 - 12:41 PM