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HomeMy WebLinkAboutCD Community Development Block Grant (CDBG)____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: May 1, 2023 Disposition: Resolution 15213 Agenda Item No: 6.b Meeting Date: May 1, 2023 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Development Prepared by: Alicia Giudice, Director Chris Hess, Assistant Director Alexis Captanian, Housing Analyst City Manager Approval: ____ TOPIC COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUBJECT RESOLUTION RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2023-24 TO THE MARIN COUNTY BOARD OF SUPERVISORS RECOMMENDATION Adopt a resolution recommending CDBG project funding for Fiscal Year 2023-24 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 be completed Vivalon Healthy Aging Center at 999 Third Street, which 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 as well as a wide range of public 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 funding allocations. Under this agreement, Marin County is divided into three local planning areas (Countywide, City of San Rafael, and 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 residents 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 is responsible for allocating CDBG funding for projects serving the San Rafael planning area. The City Council provides its recommendations to the PSC, which in turn provides the San Rafael recommendation along with recommendations for the two other planning areas to the Board of Supervisors (BOS). SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 In June 2023, 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, with the option to open a limited mid- cycle application as needed. There is a minimum grant size of $15,000 per project per year, and Countywide projects may receive funding from each planning area to bring their grant amount up to $15,000. While organizations only submit applications every two years, funding must be awarded annually based on the project’s past performance and expected funding allocation from 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 execute the project and administer federal funds? • Prioritize projects with the greatest impact. In addition to the criteria set forth by HUD, the 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). The PSC also established the following priorities for public services projects: 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 is identified as a need in both the County’s Consolidated Plan and Analysis of Impediments. In addition, HUD requires that Marin’s CDBG and HOME grants contribute to the creation of new family housing units. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 • 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 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 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 overall 2023-24 CDBG program allocation has been reduced from the prior year’s funding levels by 2.5% to $1,589,600. The CDBG funding available for the San Rafael planning area, as determined by the HUD formula included in the cooperative agreement, is $475,673. The County has identified additional one-time sources to fill this year’s funding cut and maintain the San Rafael allocation at the previous year’s level of $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 the links below. The links include applications for all planning areas: 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 funding request of $2,167,357. • Five (5) of those projects are countywide, which will result in units or services available to current San Rafael residents. • One (1) project is based in San Rafael with a total funding request of $200,000 (153 Novato St. Rehab Project, Canal Alliance). In accordance with CDBG guidelines, a minimum of $205,000 must be spent on housing projects. The funding recommendation totaling $265,000 is as follows: Housing Project Funding Applications CDBG Request San Rafael Recommendation Expected Total CDBG Allocation Canal Alliance * 153 Novato Street Rehabilitation $ 200,000 $ 180,000 $ 180,000 Eden Housing, Inc. (CHDO) Point Reyes Coast Guard $ 600,000 $ - $ - Episcopal Community Services 1251 S. Eliseo $ 500,000 $ - $ - Habitat for Humanity Greater San Francisco Residential Rehab Loan Program $ 259,357 $ 85,000 $ 210,000 Homeward Bound of Marin Novato Veterans and Workforce Housing $ 600,000 $ - $ - Marin Center for Independent Living Residential Access Modification Program $ 18,000 $ - $ - * San Rafael-only request $ 1,967,357 $ 265,000 $ 390,000 153 Novato Street Rehabilitation (Canal Alliance) consists of 12 affordable units, owned by Canal Alliance, in a 64-unit condominium complex in the Canal Neighborhood of San Rafael. As proposed, the project will renovate two units with considerable capital improvement needs and enhance the health and safety of residents. Point Reyes Coast Guard (Eden Housing, Inc.) is a decommissioned Coast Guard housing site that will be renovated and developed to provide 54 affordable homes for seniors and families. The housing units will be available to the regional population throughout Marin County, including San Rafael. 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. Residential Rehabilitation Loan Program (Habitat for Humanity Greater San Francisco) offers affordable low-interest, deferred loans to low-income qualifying homeowners to complete needed home repairs. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 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 Access Modification Program (Marin Center for Independent Living) offers home access modifications including ramps, grab bars, and other improvements to increase housing accessibility for people with disabilities, allowing them to remain in their homes. Capital Projects Two (2) community infrastructure and capital projects submitted applications from the San Rafael Planning Area. County staff recommends funding the following capital allocations totaling the $150,000: Capital Project Funding Applications CDBG Request San Rafael Recommendation Expected Total CDBG Allocation City of San Rafael Department of Public Works* Canal Area Pathway Projects $ 350,000 $ 120,000 $ 120,000 Community Action Marin* Renovation of the De Colores Children’s Center & Safety Net Services Hub to Increase Childcare for Families of Low Income $ 50,000 $ 30,000 $ 30,000 * San Rafael-only request $ 400,000 $ 150,000 $ 150,000 Canal Area Pathway Projects (City of San Rafael) The City of San Rafael’s Public Works Department requests CDBG funding to support three walkway improvement projects, including ADA accessibility, in the Canal neighborhood of San Rafael. Two of the pathways are critical thoroughfares for families to access school and the local market. 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 an allocation of approximately $70,000 for public services in 2023-24 for the San Rafael Planning Area. This allocation is based on 15% of the total entitlement available through CDBG for public services and additional one-time resources that the County has identified to keep project funding whole in Year 2 of the 2-year application cycle. The overall allocation to each planning area is a percentage of the total, less the allowed administration costs and required fair housing service funds. No more than the amount indicated in this staff report may be spent on public services, which is capped countywide at 15% of funds. The City Council has the option to reduce its public services percentage on an annual basis. However, it cannot increase it. There are a total of five (5) projects applying for public services funding—four (4) Countywide projects with a portion of services going to San Rafael residents, and one (1) serving San SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 Rafael only. Staff recommends funding for all five (5) public services projects totaling $70,000 in CDBG monies, the maximum allowed by HUD. Public Service Funding Applications CDBG Request San Rafael Recommendation Expected Total CDBG Allocation City of San Rafael/Pickleweed Preschool * Preschool/Pickleweed Preschool $ 23,000 $ 23,000 $ 23,000 Covia Foundation Home Match Marin $ 15,000 $ 7,500 $ 15,000 ExtraFood.org Building an Equitable and Sustainable Food Safety Net in Marin County $ 15,335 $ 7,750 $ 15,335 Fair Housing Advocates of Northern California ** Fair Housing Counseling and Education (HUD required funding) $ 65,000 $ - $ 65,000 Family & Children's Law Center Domestic Violence Legal Services for Low Income Families $ 15,346 $ 9,750 $ 15,346 Legal Aid of Marin Keeping Marin Residents in their Homes $ 34,500 $ 22,000 $ 34,500 *San Rafael-only request **Required Fair Housing Services $ 168,181 $ 70,000 $ 168,181 Preschool/Pickleweed Preschool (City of San Rafael, Pickleweed Preschool) provides preschool programming for 68 children in the Canal Neighborhood. 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 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 requested funding will assist an anticipated 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 requested funding will assist an anticipated 75 renters. FISCAL IMPACT: There is no direct cost or revenue impact from the recommended action. The City is directing HUD funds to specific projects. Allocating federal 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 2023-24 CDBG program funding cycle come from the Fiscal Year 2023 federal budget, which runs from October 1, 2022, to September 30, 2023. The SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 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. The planning area percentages are consistent with previous years because the 2020 Census data that is required to update the calculation has not yet been released. The recommendations shall be adjusted proportionately as necessary, subject to program guidelines, if the 2023-24 allocation differs. OPTIONS: 1. Approve the CDBG funding allocations 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 2023-24 to the Marin County Board of Supervisors. ATTACHMENTS Attachment 1 Resolution Attachment 2 Exhibit A to Resolution: 2023-24 CDBG Project Allocations Attachment 3 2023-24 PSC Roster Attachment 4 2022-24 CDBG Application Guidelines RESOLUTION NO. 15213 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2023-24 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 May 1, 2023, 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 $485,000 in CDBG funds available for allocation by the City of San Rafael be distributed to the projects and in the amounts shown on the included Attachment 2, subject to adjustments necessary to accommodate any changes in the final allocation given to the County of Marin by the federal Department of Housing and Urban Development (HUD). I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City held on the 1st day of May 2023, by the following vote: AYES: Councilmembers: Bushey, Hill, Llorens Gulati & Mayor Kate NOES: Councilmembers: None ABSENT: Councilmembers: Kertz Lindsay Lara, City Clerk Type Project Sponsor Project Name Applicants Request San Rafael Recommendation Total CDBG Allocation Housing Canal Alliance *153 Novato St. Rehab 200,000.00$ 180,000.00$ 180,000.00$ Eden Housing, Inc (CHDO)Point Reyes Coast Guard 600,000.00$ -$ -$ Episcopal Community Services 1251 S. Eliseo 500,000.00$ -$ -$ Habitat for Humanity Greater San Francisco Residential Rehab Loan Program 249,357.00$ 85,000.00$ 210,000.00$ Homeward Bound of Marin Novato Veterans and Workforce Housing 600,000.00$ -$ 100,000.00$ Marin Center for Independent Living Residential Access Modification Program 18,000.00$ -$ -$ Housing subtotal $ 2,167,357.00 265,000.00$ 490,000.00$ Capital City of San Rafael Department of Public Works *Canal Area Pathway Projects 350,000.00$ 120,000.00$ 120,000.00$ Community Action Marin * Renovation of the De Colores Children’s Center & Safety Net Services Hub to Increase Childcare for Families of Low Income 50,000.00$ 30,000.00$ 30,000.00$ Capital subtotal 400,000.00$ 150,000.00$ 150,000.00$ Public Services City of San Rafael/Pickleweed Preschool *Preschool/Pickleweed Preschool 23,000.00$ 23,000.00$ 23,000.00$ Covia Foundation Home Match Marin 15,000.00$ 7,500.00$ 15,000.00$ ExtraFood.org Building an Equitable and Sustainable Food Safety Net in Marin County 15,335.00$ 7,750.00$ 15,335.00$ Fair Housing Advocates of Northern California **Fair Housing Counseling and Education 65,000.00$ 65,000.00$ Family & Children's Law Center Domestic Violence Legal Services for Low Income Families 15,346.00$ 9,750.00$ 15,346.00$ Legal Aid of Marin Keeping Marin Residents in their Homes 34,500.00$ 22,000.00$ 34,500.00$ Public Services subtotal $ 168,181.00 70,000.00$ 168,181.00$ Total funding recommendation 485,000.00$ SAN RAFAEL PLANNING AREA 2023-24 Attachment 2: Exhibit A - 2023-24 CDBG Project *San Rafael only project **Required Fair Housing Services allocated off the top COMMUNITY DEVELOPMENT AGENCY HOUSING AND FEDERAL GRANTS DIVISION................................................................................................................................................... 2023 Countywide Priority Setting Committee Name Affiliation Cathy Cortez At-Large Community Representative Valeria Sasser Lower Ross Community Representative Jaime Yan Faurot Novato Community Representative Darlene Goins San Rafael Community Representative Ida Green Southern Marin Community Representative PJ Feffer Upper Ross Community Representative Jennifer Kerrigan West Marin Community Representative Peter Mark City of Belvedere Councilmember Kevin Carrol City of Larkspur Councilmember Stephen Burke City of Mill Valley Councilmember Mark Milberg City of Novato Councilmember Eli Hill City of San Rafael Councilmember Melissa Blaustein City of Sausalito Councilmember Eric Lucan County of Marin Supervisor Rosa Thomas Town of Corte Madera Councilmember Barbara Coler Town of Fairfax Councilmember Eileen Burke 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