Item Coversheet

Agenda Item No: 11.






AGENDA REPORT

DATE:

October 19, 2021 

TO:

Mayor and City Council

FROM:

Stefan T. Chatwin, City Manager


SUBJECT:Resolution 2021-255 of the City Council of the City of Fairfield Approving the Community Development Block Grant (CDBG) Program Fiscal Year (FY) 2022-2027 Five-Year Consolidated Plan Priorities and Goals

RECOMMENDED ACTION 
Approve resolution.
STATEMENT OF ISSUE 
The U.S. Department of Housing and Urban Development (HUD) requires all entitlement communities to create a consolidated plan. The consolidated plan identifies the city of Fairfield’s housing and community development needs. It presents a strategic plan that establishes the City’s housing and community development priorities for five years. The identified priorities align and describe how funding will be targeted in the Community Development Block Grant (CDBG) program during the consolidated plan period.
DISCUSSION
The consolidated plan is designed to help local jurisdictions assess their affordable housing and community development needs and market conditions. The CDBG program allows for community-wide assessments and surveys to help jurisdictions make data-driven place-based decisions about the effective use and priorities of CDBG funds. In 2022, the City will submit a new consolidated plan covering the five years for fiscal years (FY) 2022-2027.

Data Collection

Beginning late spring 2021, the Housing Services Department began the data collection process to develop funding priorities for the FY 2022-2027 Consolidated Plan. This data collection process included creating a comprehensive survey regarding CDBG eligible community development needs in the city. The survey was distributed to 150 city service providers; multiple affordable housing communities; individuals during community events, including the Fairfield Farmer’s Market; and placed on all City social media platforms. The Housing Services Department also recorded a commercial to be streamed on local Spanish stations. The survey was provided in three languages: English, Spanish, and Tagalog. The City received 220 survey responses. 

In addition to the community survey, multiple focus group meetings were held with service providers to identify their clientele’s greatest needs. CDBG staff met with the City’s Senior Leadership Team in the data collection efforts. 

Potential priorities were evaluated based on the following:

Demonstrated need in the city; and 
The existence of local agencies to address identified needs

Strategic Plan

The strategic plan section of the consolidated plan identifies the City’s philosophy of investment for CDBG funding and presents the priority housing and community development needs. The City intends to encourage collaboration amongst the private sector, non-profit providers, and local government to prioritize activities that meet needs identified in the strategic plan. 

To create consistency, sustainability, and efficiency in projects throughout the community, the City recommends that we use a 2-year/3-year funding model as a strategy during the five- year consolidated plan cycle. This model allows projects to initially be funded for two consecutive years. In year three, new applications will be accepted. Newly funded projects will be funded for the remaining three years of the consolidated plan, subject to performance and funding availability. Using the 2-year/3-year model has many benefits for the City as well as the grant recipients. Non-profit organizations and other sub-recipients can stabilize funding streams, refine operational practices as necessary, and project their budgets for a longer period. Using the longer funding model allows City staff to reduce procurement processes and focus more time on monitoring and helping sub-recipients meet their program goals and gain better insight into HUD CDBG compliance requirements.  

Priorities

Priority needs were determined in the Community Needs assessment process. They are grouped into four objectives: Public Services, Non-Public Services, Fair Housing, and Administration. Applicants will be required to submit an application that meets one of the priority needs in one of the listed categories.

Successful applicants for Entitlement Action Plan funding will:
Specifically, respond to the priority needs identified in the plan
Identify specific accomplishments to gauge project success
Have experience completing similar activities on time
Demonstrated prior experience managing federal funds

Public Services Priorities

The total amount of CDBG funds obligated for public service activities must not exceed 15% of the annual grant allocation plus 15% of program income received during the prior program year. The recommended priorities of the public service goals are:

Homelessness 
Staff recommends that activities to prevent and support homelessness are funded at approximately 50% of the public service cap. 

Homeless Services: Support and expand services to unhoused residents, including street outreach, case management, housing search assistance, emergency shelter, and other services.

Homeless Prevention: Expand existing homeless prevention services for at-risk residents, including emergency rental assistance, legal assistance, tenant/landlord mediation, and financial management training for lower-income residents.

Youth 
Increase enrichment, life skills, and recreational opportunities for low to moderate-income youth, foster youth, and abused children.  

Special Needs Populations Services
Increase opportunities for persons with special needs, elderly, frail elderly, and persons with physical, mental, and developmental disabilities to be housed, become more independent and be protected from discriminatory practices.

Non-Public Service Priorities

Eligible activities that do not provide a public service will be grouped in the non-public service category. There is no cap on the amount of funding allocated to non-public service activities. The following illustrates the priorities for the non-public service goals:   

Affordable Housing 
Although affordable housing is a high priority for the City, CDBG funds cannot fund the construction of new housing units. Eligible activities include: 

Expand, Maintain, and Preserve Affordable Housing:  Maintain and preserve the existing affordable housing stock, including rental units and single-family properties owned and occupied by lower-income households. 

Public Facilities and Infrastructure 
Create, preserve, and improve facilities and infrastructures that serve low-income neighborhoods, homeless, and special needs populations.

Economic Development 
(The Economic Development revolving loan fund will fund this activity) 

Reduce the number of persons with incomes below the poverty level and expand economic opportunities for very low- and low-income residents. 

Fair Housing

Promote the Affirmatively Furthering Fair Housing policy by eliminating discrimination in housing choice by providing fair housing counseling, investigation, mediation, enforcement, and education. 

Administration 
The City will allocate the maximum cap of 20% of CDBG funds towards program administration.

The administration will support the development of a thriving Fairfield community, especially for low- and moderate-income persons, by providing general management, oversight, coordination, public information and engagement, and administration of the CDBG grant in a fiscally responsible manner.

FINANCIAL IMPACT
This action has no financial impact on the City.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION 
The City initiated public contact through the community survey and a series of focus group meetings.
ALTERNATIVE ACTION 
City Council could choose not to approve the proposed resolution for the priorities; however, it will delay the development and submission of the FY 2022-2027 Consolidated Plan to HUD. 
STAFF CONTACT 
LaTanya Terrones, Senior Management Analyst
(707) 428-7454
Lterrones@fairfield.ca.gov 
 

COORDINATED WITH 
N/A
ATTACHMENTS:
Description
Proposed Resolution
Exhibit A: CDBG FY 2022-2027 Priorities
REVIEWERS:
ReviewerActionDate
Jones, LaTannaApproved10/4/2021 - 8:34 PM
Alexander, AmberApproved10/5/2021 - 11:55 AM
Alexander, AmberApproved10/5/2021 - 11:55 AM