S UBSTANTIAL A MENDMENT TO THE FY 2019-2020 A NNUAL A CTION P LAN -- CDBG-CV FUNDS City Council Meeting June 16, 2020
2 BACKGROUND • The CARES Act provides $5 billion in Community Development Block Grant (“CDBG”) funds • The money is to assist “America’s low-income families and most vulnerable citizens” • On April 2, 2020, HUD notified the City that it will receive $668,658 in v v Community Development Block Grant – Coronavirus (“CDBG-CV”) funds • City must amend the current Citizen Participation Plan and the current 2019-2020 Annual Action Plan to use CDBG-CV funds
3 BACKGROUND • The CARES Act provides flexibility for the use of CDBG-CV funds intended to “cut red tape” and eliminate regulatory barriers that may limit the use of these funds • Program flexibility is provided via regulatory guidance and waivers • Examples of program flexibility received to date include the following: v v • Public comment period for Consolidated Plan/Action Plan substantial amendments is reduced from 30 to 5 days • Allows for alternate means of public participation (e.g., virtual meetings) • Eliminates the 15 percent cap on public service grant funding
4 BACKGROUND • The CARES Act requires that CDBG-CV funds be used for activities that prepare, prevent, or respond to the impacts of the Coronavirus, and must meet one of the three National Objectives required by CDBG regulations: • Benefit low-and-moderate income persons. v v • Aid in the prevention or elimination of blight. • Meet an urgent need • CDBG-CV funds may not be used to pay costs if “another source of financial assistance is available to pay that cost”
5 BACKGROUND – CITIZEN PARTICIPATION PLAN AMENDMENT (CPP) • The CPP outlines the actions the City takes to encourage public participation in the City’s HUD programs, including amending HUD-related plans • The current CPP was approved as part of the 2015-2019 Consolidated Plan in May 2015 v v • As required, the CPP is proposed to be amended to include disaster/ emergency procedures as well as specific provisions permitted by the initial CARES Act waivers • Included is implementation of the 5-day comment period for the proposed amendment and virtual hearings for approval of amendments
6 ANALYSIS • To date, HUD has issued three waivers for the CDBG-CV program. Previously discussed, these include: • The public comment period for Consolidated Plan/Action Plan substantial amendments is reduced from 30 to 5 days v v • Allows for alternate means of public participation (e.g., virtual meetings) • Eliminates the 15 percent cap on public service grant funding.
7 PROPOSED ALLOCATION CDBG-CV Allocation $668,658 % of CDBG-CV v v Program Options CDBG-CV Funding Funds 1. Homeless Services $568,358 85% 2. CDBG-CV Administration $100,300 15% Total: $668,658 100%
8 PREVENTION & HOMELESS SERVICES • Homeless services would consist of the following activities intended to address issues related to and exacerbated by the COVID-19 pandemic: • Street outreach activities to unsheltered populations • Response to neighborhood and business locations to mitigate v v impacts of street homelessness, including transportation • Intakes for sheltering, family reunification and housing placement assistance for homeless persons • Enhancing shelter operations to ensure preventative measures are successful, including hygiene and facility cleaning supplies, food, and other facility operational costs
9 CDBG-CV ADMINISTRATION • Implementation of the CDBG-CV program will result in administrative costs that are above normal administrative costs • These expenditures include costs related to monitoring sub-recipients, preparing plans and reports, legal costs (e.g., preparation of CDBG- CV specific agreements), and accounting services costs (e.g., v v additional auditing services) • CDBG grantees can allocate up to 20% of grant funds for program administration – staff is recommending an allocation of 15% for CDBG-CV administration
10 RECOMMENDATIONS • Approve the Amended City of Costa Mesa Citizen Participation Plan • Approve the recommended allocation of $668,658 in Community Development Block Grant-Coronavirus funds v v • Authorize the City Manager, or the City Manager’s designee, to submit the Substantial Amendment to the 2019-2020 Annual Action Plan to the U.S. Department of Housing and Urban Development
11 RECOMMENDATIONS (CON’T) • Approve a Resolution order to: • Approve the Substantial Amendment to the 2019-2020 Annual Action Plan • Approve the amendments to the City of Costa Mesa Citizen Participation Plan v v • Authorize the City Manager, or the City Manager’s designee, to submit the Substantial Amendment to the 2019-2020 Annual Action Plan to the U.S. Department of Housing and Urban Development • Designate the City Manager, or the City Manager’s designee, as the official representative of the City to sign all certifications and assurances, and sub-agent agreements for the use of funds approved in the Substantial Amendment to the 2019-2020 Annual Action Plan
S UBSTANTIAL A MENDMENT TO THE FY 2019-2020 A NNUAL A CTION P LAN -- CDBG-CV FUNDS City Council Meeting June 16, 2020
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