HomeMy WebLinkAboutCD Community Development Block Grant (CDBG)____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: March 21, 2022 Disposition: Resolution 15048 Agenda Item No: 7.a Meeting Date: March 21, 2022 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: COMMUNITY DEVELOPMENT Prepared by: Alicia Giudice, Director Alexis Captanian, Housing Analyst Jacob Noonan, Housing Manager City Manager Approval: ____ TOPIC COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUBJECT RESOLUTION RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2022-23 TO THE MARIN COUNTY BOARD OF SUPERVISORS RECOMMENDATION Adopt a resolution recommending CDBG funding for Fiscal Year 2022-23 to the Marin County Board of Supervisors. BACKGROUND The Community Development Block Grant (CDBG) is a federally funded program of the U.S. Department of Housing and Urban Development (HUD) that provides funding for local community-based projects including affordable housing, community infrastructure and capital projects, and public support services. Examples of CDBG-funded projects in San Rafael include the soon to begin construction Vivalon Healthy Aging Center at 999 Third Street, which when completed will provide 66 low and very low rent apartments to income qualifying individuals and couples age 62 or older. Other examples include the recent Pickleweed Park play structure replacement, and services, including free or low-cost legal services for renters. In 2020, the City entered into a cooperation agreement with the County of Marin to manage the CDBG funds. Under this agreement, Marin County is divided into three local planning areas (Countywide, City of San Rafael, City of Novato). Funding recommendations for the three areas are overseen by a Countywide Priority Setting Committee (PSC) made up of City and Town Council members, a County Supervisor, and community members representing members of the protected classes (race, color, national origin, religion, sex, familial status, or disability) under fair housing laws. Under the cooperative agreement, the City has responsibility for allocating CDBG funding in the San Rafael planning area. The City Council provides its recommendations to the PSC, which in turn provides the recommendation along with the recommendations for the other two planning areas to the Board of Supervisors (BOS). SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 In May 2022, the BOS will hold a public hearing and act on the funding recommendations from the City and the PSC. Following BOS action, the recommendations will be submitted to HUD. ANALYSIS The CDBG program uses a two-year application cycle. Housing and community infrastructure/ capital projects apply for funding using a two-year project timeline and budget. There is a minimum grant size of $15K per year, and Countywide projects may receive funding from each planning area to bring their grant amount up to $15K. While applications are only received every two years, funding allocations must be approved annually based on the project’s past performance and expected funding allocated by HUD. Evaluation Guidelines All applications received by the County were evaluated based on the criteria listed below: HUD National Objective Thresholds: • Benefit low- and moderate-income persons. • Prevent or eliminate blight or meet other community development needs for low- and moderate-income persons. PSC Enhanced Thresholds: • Support projects that affirmatively further fair housing and have the commitment and capacity to engage in affirmative marketing.1 • Prioritize projects that serve members of the protected classes as defined by HUD. • Prioritize projects that serve low-income persons. Project Evaluation Criteria: • Readiness—can awarded funds be completely expended during the grant year? • Sustainability—does the organization have the capacity to sustain a project or program beyond this federal funding period? • Effectiveness and Accountability—does the organization have the capacity and track record to effectively conduct the project and administer federal funds? • Prioritize projects that will provide the greatest impact. In addition to the criteria set forth by HUD, the Countywide PSC approved establishing two additional priorities for funding CDBG and HOME housing projects: • Family Housing 2 • Land trust model in eastern Marin that provides home ownership opportunities (In this context, Eastern Marin is defined as all areas in Marin except West Marin). 1 Affirmative Marketing is targeted outreach about program opportunities to groups of people otherwise least likely to apply for or receive those opportunities. Given Marin’s history of segregation, the protected class populations typically included in Affirmative Marketing are Black/African American, Asian/Pacific Islander, and Latinx. Programs that do not conduct broad affirmative marketing are less competitive in the allocation process. 2 Family Housing has been identified as a need in both the County’s Consolidated Plan and Analysis of Impediments to Fair Housing Choice. In addition, HUD is requiring Marin’s CDBG and HOME grant funding to contribute to the creation of at least 100 new family housing units by 2022. The only application for a project developing family housing this year is Eden Housing’s Coast Guard Housing. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 The PSC also established the following priorities for public services projects: • Basic Health Services – includes services that prevent or treat medical conditions for individuals who are un-insured, under-insured, or people with low incomes who cannot afford their deductible. Programs and services include but are not limited to preventative health such as immunizations, childcare from birth, periodic health evaluations for adults, voluntary family planning services, children’s eye and ear examinations to determine the need for vision and hearing correction, and hygiene services. Services may also include medically necessary emergency health care, inpatient and outpatient treatment, diagnostic laboratory and diagnostic and therapeutic radiologic services, and provision of prescription drugs. • Children, Youth, and Parent Support Services – includes services that target low- income families and address disparities in access to early childhood education, high costs of childcare county-wide, and family self-sufficiency. Programs and services include but are not limited to supporting childcare scholarships, student extracurricular activities, parent engagement and training, case management, therapeutic services, transportation, home visitations, and family legal supports. • Food Security – includes services that provide physical and/or economic access to food to meet dietary needs for a productive and healthy life. Programs and services include but are not limited to free meal sites, food banks, grocery subsidies, home-delivered meals, and other programs that provide food to people in need. • Housing Support Services – includes services that assist individuals in accessing stable housing, prevent discrimination in housing choice, and aid renters in maintaining stable housing. Programs and services include but are not limited to fair housing counseling, legal support, housing locators, and down payment and rental assistance. CDBG Funding – City of San Rafael Planning Area The charts beginning on the following page provide the funding recommendations based on the evaluation criteria above. The San Rafael planning area allocations are in bold. Following each chart is a brief description of the project(s) recommended for funding. The estimated amount of CDBG funding available for the San Rafael planning area, as determined by the HUD formula included in the cooperative agreement, in 2022-2023 is $485,000 (sum of “San Rafael Recommended Funds” in Attachment 2). Per HUD regulation, a maximum of $70,000 can be used for public services, a minimum of $205,000 must be spent on housing, and the remaining $210,000 can be spent on either housing or community infrastructure/capital projects. A list of the applications received for the San Rafael Planning Area and for Countywide projects serving the San Rafael Planning Area is provided as Attachment 2. The recommendations for allocating the San Rafael planning area CDBG funds and total expected allocations including funding from the other planning areas are also included. The list of all applications received by the County for funding in the current round can be accessed online via these links. This list of applications includes applications for Countywide Planning Area and the Novato Planning Area in addition to funding applications for the San Rafael Planning Area: Community Infrastructure/Capital Projects, Housing Projects, and Public Services Projects. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Housing Projects Six (6) housing projects submitted applications for funding from the San Rafael Planning Area. The six (6) projects have a Year-1 funding request of $1,290,800. • Five (5) of those projects are countywide, which will result in units or services available to current San Rafael residents. • The one project based in San Rafael with a total funding request of $300,000 applied for Year-2 funding only. (Belvedere St. Project, Canal Alliance) • The one family-housing project was determined to be ineligible due to regulatory flood hazards located on the property. Following CDBG guidelines, the minimum of $205,000 in CDBG funds available for 2022 must be spent on housing projects. The funding recommendation totaling $265,000 is as follows: Housing Project Funding Applications Year 1 CDBG Request Year 2 CDBG Request San Rafael Year 1 Expected Total CDBG Allocations Yr 1 Eden Housing, Inc (CHDO) Point Reyes Coast Guard $ 273,000 $ 273,000 Ineligible $ - Episcopal Community Services 1251 S. Eliseo $ 500,000 $ 500,000 $ 92,500 $ 408,250 Homeward Bound of Marin Novato Veterans and Workforce Housing $ 250,000 $ - $ 92,500 $ 250,000 Marin Center for Independent Living Residential Access Modification Program $ - $ 18,000 $ - $ - Residential Rehabilitation Loan Program $ 267,800 $ 282,200 $ 80,000 $ 250,000 Canal Alliance Canal Alliance Affordable Housing $ - $ 300,000* $ - $ - * San Rafael only request $ 1,290,800 $ 1,373,200 $ 265,000 1251 S Eliseo (Episcopal Community Services) is a former skilled nursing facility that will be renovated into 43 units of supportive housing for chronically homeless adults plus one manager’s unit. When completed the project will provide housing for the regional homeless population throughout Marin County, including San Rafael. Novato Veterans and Workforce Housing (Homeward Bound of Marin) is a future housing community providing 24 affordable 1-bedroom apartments of supportive housing for formerly homeless veterans and 26 1-bedroom apartments for formerly homeless adults and small families who are re-entering the workforce. When completed the project will provide housing for the regional homeless population throughout Marin County, including San Rafael. Residential Rehabilitation Loan Program is administered by the County and offers affordable loans to income qualifying homeowners to complete needed home repairs. Capital Projects Two applications for community infrastructure and capital projects were received serving San Rafael. Staff recommends the following capital application for Year 1, totaling the full $150,000. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 Capital Project Funding Applications Year 1 CDBG Request Year 2 CDBG Request San Rafael Year 1 Expected Total CDBG Allocations Yr 1 City of San Rafael Department of Public Works* Canal Area Pathway Projects $ - $ 350,000 $ - $ - Community Action Marin Renovation of the De Colores Children’s Center & Safety Net Services Hub to Increase Childcare for Families of Low Income $ 150,000 $ 50,000 $ 150,000 $ 150,000* * San Rafael only request $ 150,000 $ 400,000 $ 150,000 De Colores Children’s Center and Safety Net Services Hub (Community Action Marin) currently provides childcare and healthy meals to 33 children Monday through Friday. As proposed, the renovations will increase the capacity of the center to provide services and healthy meals for 17 additional children in San Rafael. Public Services The chart on the following page provides funding recommendations for public services. The County expects to receive an allocation of approximately $70,000 for public services in 2022-23 for the San Rafael planning area. This allocation is based on 15% of the total entitlement funding available through CDBG for public services. The overall allocation to each planning area is a percentage of this total, less the allowed administration costs and required fair housing service funding. No more than the amount indicated in this staff report may be spent on public services, which is based on the overall countywide grant’s 15% cap. The amount of funding allocated to public services can be reduced, however, it cannot be increased. There are a total of 13 projects applying for public services funding—12 Countywide projects with a portion of services going to San Rafael residents, and one (1) serving San Rafael only. Staff recommends funding for five (5) public services projects totaling $70,000 in CDBG monies, the maximum allowed by HUD. Public Service Funding Applications 2021-22 San Rafael Allocation CDBG Request for 2022-23 San Rafael Year 1 Total CDBG Allocations Bambini Yoga Project Wednesday Food Distribution Center at Martin Luther King Jr. Academy $ - $ 17,674 $ - $ - Center for Employment Opportunities, Inc Employment & Training Services for Formerly Incarcerated Marin County Residents $ - $ 15,000 $ - $ - Community Action Marin Driving to Thriving Project: Commercial Driver's License Workforce Development Project $ - $ 65,000 $ - $ - SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 Public Service Funding Applications 2021-22 San Rafael Allocation CDBG Request for 2022-23 San Rafael Year 1 Total CDBG Allocations Covia Foundation Home Match Marin $ 8,000 $ 15,000 $ 7,500 $ 15,000 ExtraFood.org Building an Equitable and Sustainable Food Safety Net in Marin County $ - $ 25,000 $ 7,750 $ 15,000 Fair Housing Advocates of Northern California Fair Housing Counseling and Education (HUD required funding) $ 25,000 $ 75,000 $ - $ 65,000* Family & Children's Law Center Domestic Violence Legal Services for Low Income Families $ 6,750 $ 30,000 $ 9,750 $ 15,000 In Spirit Food Stipend and Caregiver Financial Aid Expansion Program $ - $ 48,800 $ - $ - Legal Aid of Marin Keeping Marin Residents in their Homes $ 18,240 $ 40,000 $ 22,000 $ 34,500 Marin County Dental Care Foundation Helping Children Smile $ - $ 50,000 $ - $ - Multicultural Center of Marin Equity in Access for Self- Sufficiency $ - $ 65,000 $ - $ - Vivalon Nourish by Vivalon $ - $ 65,000 $ - $ - City of San Rafael/Pickleweed Preschool Preschool/Pickleweed Preschool $ 21,500 $ 44,424 $ 23,000 $ 23,000** *Required Fair Housing Services **San Rafael only request $ 555,898 $ 70,000 Home Match Marin (Covia Foundation) provides a roommate matching service. The program is mainly used by older adults. Benefits of the program include providing a means for older residents to remain in their homes and to supplement incomes, while avoiding isolation. Building an Equitable and Sustainable Food Safety Net in Marin County (ExtraFood.org) distributes unused fresh foods from local participating businesses to lower income families. The program supports access to healthy foods while reducing food waste. Domestic Violence Legal Services for Low Income Families (Family and Children’s Law Center) supports victims of domestic violence. The funding requested anticipated assisting 70 lower income individuals and their children. Keeping Marin Residents in their Homes (Legal Aid Marin) provides free legal assistance to extremely low income renters experiencing eviction or threat of eviction. The funding requested anticipated assisting 75 renters. Preschool/Pickleweed Preschool (City of San Rafael, Pickleweed Preschool) provides preschool programming for 68 children in the Canal Neighborhood. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 FISCAL IMPACT: There is no direct cost or revenue impact from the recommended action. City is directing HUD funds to specific projects. Allocating funds to potential City projects may allow City general and capital funds to be allocated to other priorities. Funds for the County of Marin’s 2022-2023 CDBG program funding cycle come from the Fiscal Year 2022 federal budget, which runs from October 1, 2021, to September 30, 2022. The funding is allocated formulaically to entitled cities and counties. Three factors are included in the San Rafael Planning Area allocation formula: population, overcrowding, and poverty. Because the 2020 Census data, which is required to update the calculation has not yet been released, the planning area percentages are consistent with previous years. In addition, the County of Marin has not yet received its CDBG program allocation from HUD for the coming year. Therefore, the recommendations provided in this report are based on last year’s allocation. The recommendations shall be adjusted proportionately and subject to program guidelines as necessary if the 2022-23 allocation differs from the 2021-22 allocation. OPTIONS: 1. Approve the CDBG funding as recommended. 2. Make different allocations of CDBG funding. (Funds may be shifted within categories, but the Public Services category cannot exceed $70,000.) 3. Let the Countywide Priority Setting Committee provide a recommendation for the San Rafael Planning Area funding requests. 4. Provide direction to staff. ACTION REQUIRED: Adopt a resolution recommending CDBG funding for Fiscal Year 2022-23 to the Marin County Board of Supervisors. ATTACHMENTS Attachment 1 Resolution Attachment 2 Exhibit A to Resolution 2022-23 CDBG Project Allocations Attachment 3 PSC 2022-23 Roster Attachment 4 2022-24 CDBG Application Guidelines RESOLUTION NO. 15048 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2022-23 TO THE MARIN COUNTY BOARD OF SUPERVISORS BE IT RESOLVED by the Council of the City of San Rafael as follows: WHEREAS in June 1999, the City Council revised the Cooperation Agreement with the County of Marin for Community Development Block Grant (CDBG) funds whereby the City remained in the County system; and WHEREAS in December 1999, the City devised a project selection process for CDBG projects; and WHEREAS on March 21, 2022, in accordance with the adopted project selection process the City Council reviewed the submitted applications; NOW, THEREFORE IT IS HEREBY RESOLVED that the City Council recommends to the Marin County Board of Supervisors that the $485,000 in CDBG funds available for allocation by the City of San Rafael be distributed to the projects and in the amounts shown on Exhibit A attached hereto and incorporated herein by reference, subject to adjustments necessary to accommodate any changes in the final allocation given to the County of Marin by the federal Department of Housing and Urban Development (HUD). I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City held on the 21st day of March 2022, by the following vote: AYES: COUNCIL MEMBERS: BUSHEY, HILL, KERTZ, LLORENS GULATI & MAYOR KATE NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE Lindsay Lara, City Clerk Project #Project Sponsor Project Name Countywide Funding Request San Rafael Allocation Total CDBG Allocations HOUSING CH 01 Eden Housing, Inc (CHDO)Point Reyes Coast Guard $ 273,000 Ineligible $ - CH 02 Episcopal Community Services 1251 S. Eliseo $ 500,000 $ 92,500 $ 408,250 CH 03 Homeward Bound of Marin Novato Veterans and Workforce Housing $ 250,000 $ 92,500 $ 250,000 CH 04 Marin Center for Independent Living Residential Access Modification Program $ - $ - $ - CH 05 TBD Residential Rehab Loan Program $ 267,800 $ 80,000 $ 250,000 SH 01 Canal Alliance Canal Alliance Affordable Housing $ - $ - $ - Housing Sub-total 1,290,800$ 265,000$ 908,250$ CAPITAL SC 01 City of San Rafael Department of Public Works Canal Area Pathway Projects -$ $ - $ - SC 02 Community Action Marin Renovation of the De Colores Children’s Center & Safety Net Services Hub to Increase Childcare for Families of Low Income 150,000$ $ 150,000 $ 150,000 Capital Sub-total 150,000$ 150,000$ 150,000$ Project #Project Sponsor Project Name Countywide Funding Request San Rafael Allocation Total CDBG Allocations PUBLIC SERVICES CS 01 Bambini Yoga Project Wednesday Food Distribution Center at Martin Luther King Jr. Academy $ 17,674 $ - $ - CS 02 Center for Employment Opportunities, Inc Employment and Training Services for Formerly Incarcerated Marin County Residents $ 15,000 $ - $ - CS 03 Community Action Marin Driving to Thriving Project: Commercial Driver's License Workforce Development Project $ 65,000 $ - $ - CS 04 Covia Foundation Home Match Marin $ 15,000 $ 7,500 $ 15,000 CS 05 ExtraFood.org Building an Equitable and Sustainable Food Safety Net in Marin County $ 25,000 $ 7,750 $ 15,000 CS 06 Fair Housing Advocates of Northern California Fair Housing Counseling and Education $ 75,000 $ - $ 65,000 CS 07 Family & Children's Law Center Domestic Violence Legal Services for Low Income Families $ 30,000 $ 9,750 $ 15,000 CS 08 In Spirit Food Stipend and Caregiver Financial Aid Expansion Program $ 48,800 $ - $ - CS 09 Legal Aid of Marin Keeping Marin Residents in their Homes $ 40,000 $ 22,000 $ 34,500 CS 10 Marin County Dental Care Foundation Marin County Dental Care Foundation: Helping Children Smile $ 50,000 $ - $ - CS 11 Multicultural Center of Marin Equity in Access for Self-Sufficiency $ 65,000 $ - $ - CS 12 Vivalon Nourish by Vivalon $ 65,000 $ - $ - SS 01 City of San Rafael/Pickleweed Preschool Preschool/Pickleweed Preschool $ 44,424 $ 23,000 $ 23,000 555,898$ 70,000$ 167,500$ Total $ 485,000 COMMUNITY DEVELOPMENT AGENCY HOUSING AND FEDERAL GRANTS DIVISION................................................................................................................................................... 2022 Countywide Priority Setting Committee Name Affiliation Cathy Cortez At-Large Community Representative Loni Mahanta Lower Ross Community Representative Curtis Aikens Sr. Novato Community Representative Darlene Goins San Rafael Community Representative Ida Green Southern Marin Community Representative PJ Feffer Upper Ross Community Representative Madeline Nieto Hope West Marin Community Representative Jim Lynch City of Belvedere Councilmember Catherine Way City of Larkspur Councilmember Stephen Burke City of Mill Valley Councilmember Denise Athas City of Novato Councilmember Eli Hill City of San Rafael Councilmember Melissa Blaustein City of Sausalito Councilmember Judy Arnold County of Marin Supervisor Leila Mongan Town of Corte Madera Councilmember Barbara Coler Town of Fairfax Councilmember Alexis Fineman Town of San Anselmo Councilmember Holli Their Town of Tiburon Councilmember 2022-24 COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIPS PROGRAM APPLICATION GUIDELINES County of Marin 2022-24 CDBG/HOME APPLICATION GUIDELINES Page 1 of 8 Housing & Federal Grants Division Application logistics: Application Process and Timing •Applications will be open on Monday, January 3, 2022. •Bidders Conference: Tuesday, January 11th, 2022 via Zoom. Registration is required. o 11:00 am to 12:00 pm - Public Service Projects: https://us06web.zoom.us/meeting/register/tZ0qd-yqrTgtHdPnC7alxakdQGoDnJg47-6A o 1:00 to 2:00 pm - Community Infrastructure/Capital and Housing Projects: https://us06web.zoom.us/meeting/register/tZUofu6pqDkqE9LDPyuqfuEw8p6jPr8n5wJr •Application Office Hours via Zoom - January 4 through January 24. Registration is required. o Tuesday – January 4, 11, and 18 from 3-4 pm: https://us06web.zoom.us/meeting/register/tZcrdOGqrzgjGd32GYsIxMGQ2gDENckO4fgs o Wednesday – January 5, 12, and 19 from 1-2 pm: https://us06web.zoom.us/meeting/register/tZIqcO2qrT8tE9HudS8R6UDKlVJ-CnIw3klV o Thursday – January 6, 13, and 20 from 12-1 pm: https://us06web.zoom.us/meeting/register/tZAoceGppzosEtK-C2PRY_crFv-Y3zuqQtis o Friday – January 7, 14, and 21 from 10-11 am: https://us06web.zoom.us/meeting/register/tZ0lf-GhqjMjH9HvKMKr_yOuWV2LyKJdj9h9 o Monday – January 24 from 3-5pm, LAST DAY to Submit. https://us06web.zoom.us/meeting/register/tZIkcO6qrD0uGNXDSaFGG1Cb77Y--_gBYfEi •Applications will be due on Monday, January 24, 2022, no later than 5:00 PM. Authorized hardcopy submissions must be in hand - POSTMARKS WILL NOT BE ACCEPTED. •Federal Grants staff will review applications between January and March. •Public hearings to determine recommendations will be held March-April 2022. •The Board of Supervisors will hold the final public hearing to approve final recommendations in May. •County of Marin will submit approved recommendations to HUD on May 15. Application submittal Submissions should be made through the online application form available on the Federal Grants webpage at www.marincounty.org/federalgrants. It is recommended that applicants complete the application questions in a document saved to a local computer prior to completing the online form for submission. Under certain circumstances emailed and mailed hard copy applications will be accepted. Please contact staff at federalgrants@marincounty.org for a reasonable accommodation if you are unable to submit the application using the online form. Applications submitted in Spanish or Vietnamese will be accepted via email or hardcopy. County of Marin 2022-24 CDBG/HOME FUNDING APPLICATION Page 2 of 8 Average Annual Grant Size • Public service grants are typically awarded between $15,000 and $65,000. • Community Infrastructure/Capital improvement grants range from $30,000 to $200,000, depending on the project scope. • Housing grants vary from $30,000 to $500,000, depending on the project scope. Eligible Applicants and Projects • Applicants must either be a nonprofit, government entity, or have a fiscal sponsor that is a nonprofit or government entity. Individuals are not eligible for funding. • To ensure affordable housing is dispersed throughout the county, CDBG and HOME funds cannot be used for housing projects in the Canal Neighborhood of San Rafael or Marin City. • To learn more about eligible and ineligible activities, review these guides to eligible CDBG activities and eligible HOME activities. • Projects cannot be located in a Floodway and projects in a Special Flood Hazard Zone must have flood insurance. Use this to verify if your project is in a floodway/zone: https://msc.fema.gov/portal/home. Important Points to Keep in Mind for Applications and Project Planning • Applications are for a 2-year cycle. This application will be used to fund projects in program years 2022- 23 and 2023-24 1. • Minimum grant size is $15,000 per year. • Organizations may only apply for one project in each category of funding. (Eg. an organization may apply for funding under the Public Service category and the Community Infrastructure/Capital category.) • Only complete applications submitted on-time will be considered for funding. • Complete applications include the application document, project budget, and organization budget. • Housing funding will first prioritize projects that provide Family Housing and/or a Land trust model in eastern Marin that provides home ownership opportunities, with specific inclusion for African Americans. • CDBG public service funds will first prioritize projects that provide Basic Health Services; Children, Youth, and Parent Support Services; Food Security; and Housing Support Services. Detailed descriptions are available on page 4. • Housing projects built before 1978 will require lead testing or proof of past testing/treatment in accordance with the Lead Safe Housing Rule. Project scopes should consider this and include these costs. • Staff will pursue reprogramming of funds for projects that do not make substantial progress in the initial funding year. Notice of Funding Availability: Community Development Block Grant (“CDBG”) and Home Investment Partnership Program (“HOME”) For 2022-24 application cycle The Marin County Community Development Agency’s Housing and Federal Grants Division is pleased to announce the opening of the application period for the CDBG and HOME programs. 1 Staff reserve the right to open the application in 2023-24, if deemed necessary. County of Marin 2022-24 CDBG/HOME FUNDING APPLICATION Page 3 of 8 Overview Federal funding through the Community Development Block Grant (CDBG) program provides communities with resources to address a wide range of unique community development needs. The CDBG entitlement program allocates annual grants to larger cities and urban counties to develop thriving communities by providing funding to assist in the creation of affordable housing, a suitable living environment, and expanded economic opportunities for low and moderate-income persons. The Home Investment Partnerships Program (HOME) funds the creation, preservation, and rehabilitation of affordable housing for low income households. The programs are managed by the Federal Department of Housing and Urban Development (HUD). National objectives for funding Each activity funded by CDBG must meet one of the following national objectives for the program. Each application must clearly state which objective the proposed project addresses. • Benefit low and moderate-income persons. • Prevention or elimination of slums or blight. • Address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which no other funding is available. Priority Setting Committee local thresholds for funding All applications are assessed using the following as thresholds for funding: • Support projects that Affirmatively Furthering Fair Housing and have the commitment and capacity to engage in Affirmative Marketing. • Prioritize projects that serve members of the protected classes as defined by HUD (race, color, religion, national origin, sex, disability, and familial status). • Prioritize projects that serve low-income persons. Evaluation Criteria: All applications are assessed on the following baseline criteria: • Readiness—can awarded funds be completely expended during the grant year. • Sustainability—does the organization have capacity to sustain a project or program beyond this federal funding period? • Effectiveness and Accountability—does the organization have the capacity and track record to effectively conduct the project and administer federal funds? Are there current or upcoming organizational leadership transitions? • Prioritize greatest impact. The Countywide Priority Setting Committee has approved funding priorities for Housing and Public Services dollars that consider projects in the following categories first: Funding priorities for Housing funds: • Family Housing • Land trust model in eastern Marin2 that provides home ownership opportunities, with specific inclusion for African Americans. 2 Eastern Marin in this case is defined as all of the areas of Marin, except for West Marin County of Marin 2022-24 CDBG/HOME FUNDING APPLICATION Page 4 of 8 Funding priorities for Public Service funds: • Basic Health Services – includes services that prevent or treat medical conditions for individuals who are un-insured, under-insured, or people with low incomes who cannot afford their deductible. Programs and services include but are not limited to preventative health such as immunizations, well-child care from birth, periodic health evaluations for adults, voluntary family planning services, children’s eye and ear examinations conducted to determine the need for vision and hearing correction, and hygiene services. Services may also include medically necessary emergency health care, inpatient and outpatient treatment, diagnostic laboratory and diagnostic and therapeutic radiologic services, and provision of prescription drugs. • Children, Youth, and Parent Support Services – includes services that target low-income families and address disparities in access to early childhood education, high costs of childcare county wide, and family self-sufficiency. Programs and services include but are not limited to supporting childcare scholarships, student extracurricular activities, parent engagement and training, case management, therapeutic services, transportation, home visitations, and family legal supports. • Food Security – includes services that provide physical and/or economic access to food to meet dietary needs for a productive and healthy life. Programs and services include but are not limited to free meal sites, food banks, grocery subsidies, home delivered meals, and other programs that provide food to people in need. • Housing Support Services – includes services that assist individuals in accessing stable housing, prevent discrimination in housing choice, and aid renters in maintaining stable housing. Programs and services include but are not limited to fair housing counseling, legal support, housing locators, and down payment and rental assistance. While this priority list does not preclude the funding of other types of projects, it provides staff with further direction when evaluating applications that meet both the national and local baseline thresholds. Project budgets: Detailed project budgets including sources and uses of funds to complete the project are required. Public Services: Project budgets for all public service project applications should cover a 1-year time period only. Year two funding allocations will be based on the 1-year budget in relation to outcomes achieved and HUD funding levels. Community Infrastructure/Capital and Housing: Project budgets for community infrastructure/capital and housing project applications should be developed spanning a two-year time period, with specific outcomes and line items associated with each year. If your project has received planning approvals, has an environmental review on file, and is ready to move forward in a 1-year time frame please indicate so. Income verifying clients: All applicants are required to income qualify beneficiaries of services provided with CDBG and HOME funds. Under CDBG regulations HUD presumes the following groups to be low-income and income verification is not required: abused children, battered spouses, the elderly, adult persons with serious disabilities, individuals who are homeless, illiterate persons, and migrant farm workers. Removal of architectural barriers to assist seniors and adults with severe disabilities would fall under this category of Presumed Benefit. County of Marin 2022-24 CDBG/HOME FUNDING APPLICATION Page 5 of 8 Marin County Federal Grants Program Overview All of the eleven cities and towns in Marin County and the County of Marin participate in the Federal Grants program through a cooperation agreement. The cooperation agreement establishes a Countywide Priority Setting Committee to oversee the Federal Grants program and is renewed every three years. The cooperation agreement allows Marin County to be defined as an “urban county” for CDBG and enables it to receive a direct CDBG funding allocation. Novato and San Rafael are eligible to receive CDBG funding as entitlement cities because their populations exceed 50,000 persons. However, both cities have chosen to continue with the cooperation agreement to assure that Marin meets the population standard for urban counties and to streamline funding processes for applicants. The County is divided into three (3) planning areas: Novato, San Rafael, and County Other. Each planning area receives a portion of the overall allocation based on an analysis of the most recent Census Data looking at population, the extent of poverty, and the extent of housing overcrowding, with the provision that the extent of poverty be counted twice. The total CDBG allocation for Marin County has been about $1.5 Million dollars annually and HOME is about $800,000 annually. Staff will make funding recommendations based on these previous allocations. Marin County Allocation Formula: The Federal Grants program is administered by staff in the Marin County Community Development Agency. Federal regulations for CDBG limit the amount of administrative costs to 20% of the available grant funds. In addition, public services are limited to 15% of available grant funds. 40% of funds are allocated to housing and the remaining 25% of funding is available for community infrastructure/capital improvement projects and/or housing. HOME funds are used exclusively for affordable housing serving low and very low-income. Federal regulations limit the amount of administrative costs to 10% of the available grant funds. Selection Process: The Novato City Council and San Rafael City Council hold public hearings on all CDBG applications for their respective planning areas and make a funding recommendation to the Board of Supervisors. The Countywide Priority Setting Committee makes funding recommendations for the County Other planning area and HOME Program funding to the Board of Supervisors. Requirements for Grant Disbursement: All recipients will be required to enter into a contract with the County of Marin. This contract will include: • Scope of service and use of funds. • Expected outcomes. • Compliance with certain administrative requirements and accounting records. • Agreement to affirmatively further fair housing and conduct affirmative marketing. • Non-discrimination. All projects will require Federal environmental review clearance (NEPA). This is required even for projects that are not subject to CEQA. The Housing and Federal Grants Division is responsible to conduct the environmental review. Awardees should note that project funds may not be spent until the environmental review has been completed. County of Marin 2022-24 CDBG/HOME FUNDING APPLICATION Page 6 of 8 All community infrastructure/capital projects and some housing projects will be subject to the Federal Davis- Bacon Act regarding prevailing wages for construction workers. Davis Bacon often has standards that differ from California prevailing wage standards. A lien is placed on all community infrastructure/capital and housing improvement projects. This lien must be repaid if the property is ever sold. The lien amount is not fixed and will be calculated as the amount of funding to the current value. The lien will increase as the value of the property rises. This lien has no time limit. The lien can be assumed by another nonprofit. HOME will establish regulatory agreements dictating the affordability of the property and/or HOME units. Commonly Used Terms Affirmatively Furthering Fair Housing: Taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. Public service projects can affirmatively further fair housing by providing access to opportunities and by transforming racially and ethnically concentrated areas of poverty into areas of opportunity. Affirmative Marketing: Through an affirmative marketing plan, a housing and service provider indicates what special efforts they will make to reach out to potential tenants or applicants who might not normally seek housing or services in their project and identify those least likely to apply and market to them. Community Housing Development Organization (CHDO), is a private nonprofit, community-based organization that has staff with the capacity to develop affordable housing for the community it serves. To qualify for designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience. At least 15% of HOME funds must be allocated to CHDOs. A minimum requirement to be a CHDO is that at least one-third of the board membership are either low-income, residents of low-income neighborhoods, or are elected as representatives of low-income neighborhood organizations. Community Development Block Grant (CDBG): funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development. Construction of Housing: Under this category, CDBG funds may be used in certain specified circumstances to finance the construction of new permanent residential structures. Eligible uses include acquisition of sites, site improvements to publicly-owned land to enable the property to be used for the new construction of housing (provided the improvements are undertaken while the property is still in public ownership) and the cost of disposing of real property acquired with CDBG funds, which will be used for new construction of housing. Countywide Priority Setting Committee (PSC): oversees the distribution of federal funds through the Community Development Block Grant program (CDBG) and HOME Investment Partnerships Program (HOME) County of Marin 2022-24 CDBG/HOME FUNDING APPLICATION Page 7 of 8 to support a variety of community-based projects, including affordable housing, community facilities, and public services such as childcare scholarships and services for individuals with disabilities. The PSC establishes funding priorities and reviews applications from local nonprofit and public agencies. The PSC includes a member of the Board of Supervisors, 10 city/town council members, as well as seven (7) community members representing six (6) regions spanning Marin and an at-large member representing the County. Davis-Bacon: The Davis–Bacon Act of 1931 is a United States federal law that establishes the requirement for paying the federally established prevailing wages on construction projects for laborers and mechanics. Demographics: HUD changed the data collection requirements regarding race/ethnicity categories during program year 2002-2003. These changes reflect Office of Management and Budget 1997 standards establishing that “Hispanic” is not a race category, but an ethnic category that cuts across all races. Those who are White, Black, Asian, Pacific Islander, American Indian, or a multi-race may also be counted as being of Hispanic ethnicity. As such, when asking the individual/household to select a race category, the individual/household must also state whether they are of Hispanic ethnicity. For example, an individual/household of Mexican descent would likely state their race as either American Indian or White, and would also fall under the category of “also Hispanic.” Housing and Federal Grants Division: Staffed by the Marin County Community Development Agency, Housing and Federal Grants provides Marin communities with resources to address a wide range of unique community development needs and Housing Policy. HOME Investment Partnerships Program (HOME): funds a wide range of activities including building, buying, and/or rehabilitating affordable housing for low-income people. HOME projects must match every dollar of HOME funds used with 25 cents from nonfederal sources, which may include donated materials or labor, the value of donated property, proceeds from bond financing, and other resources. HUD: US Department of Housing and Urban Development Protected classes: Under federal anti-discrimination law, a protected class is a group of people with a common characteristic who are legally protected from discrimination on the basis of that characteristic. The following characteristics are protected by the Federal Fair Housing Act: race, color, religion, national origin, sex, disability, and familial status (this last term refers to the presence of at least one child under 18 years old, and also protects prospects and tenants who are pregnant or in the process of adopting a child). Public Services: CDBG funds can be used for activities that benefit low- and moderate-income people, such as childcare, health care, job training, recreation programs, education programs, public safety services, fair housing activities, services for senior citizens, services for homeless persons, drug abuse counseling and treatment, energy conservation counseling and testing, and homebuyer down payment assistance. To be eligible for funding, public services must be either a new service or provide a quantifiable increase in the level of a service. No more than 15% of CDBG funds can be used for public services. Rehabilitation: CDBG funds may be used to finance the costs of rehabilitation as shown below. Residential—Residential property, whether privately or publicly owned. This includes manufactured housing when such housing constitutes part of the community’s housing stock. Commercial/industrial—Commercial or industrial property, but where such property is owned by a for-profit, rehabilitation under this category is limited to exterior improvements of the building and the correction of code violations. County of Marin 2022-24 CDBG/HOME FUNDING APPLICATION Page 8 of 8 Other—Nonprofit-owned, nonresidential buildings and improvements that are not considered to be public facilities or improvements under §570.201(c) of the CDBG program regulations. NEPA: The National Environmental Policy Act (NEPA) is a United States environmental law that promotes the enhancement of the environment and established the President's Council on Environmental Quality (CEQ). Staff must complete an environmental review for all CDBG and HOME funded projects. Income Limits - 2021 HUD INCOME LIMITS Household Size Extremely Low (0-30%) Very-Low (30+-50%) Low (50+-80%) Moderate (80+-120%) Median 1 $38,400 $63,950 $102,450 $125,650 $104,700 2 $43,850 $73,100 $117,100 $143,650 $119,700 3 $49,350 $82,250 $131,750 $161,600 $134,650 4 $54,800 $91,350 $146,350 $179,500 $149,600 5 $59,200 $98,700 $158,100 $193,850 $161,550 6 $63,600 $106,000 $169,800 $208,250 $173,550 7 $68,000 $113,300 $181,500 $222,600 $185,500 8 $72,350 $120,600 $193,200 $236,950 $197,450 SOURCE: U.S. Department of Housing and Urban Development