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HomeMy WebLinkAboutCED Community Development Block Grant (CDBG)____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: May 6, 2024 Disposition: Resolution 15285 Agenda Item No: 6.a Meeting Date: May 6, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community and Economic Development Prepared by: Micah Hinkle, Director Alexis Captanian, Housing Manager Mel Burnette, Housing and Homelessness Analyst City Manager Approval: ____ TOPIC COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUBJECT RESOLUTION RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2024-25 TO THE MARIN COUNTY BOARD OF SUPERVISORS RECOMMENDATION Adopt a resolution recommending CDBG project funding for Fiscal Year 2024-25 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 replacement of the Pickleweed Park play structure, access to preschool programs for low-income families, and the recently completed Vivalon Healthy Aging Center at 999 Third Street, which provides 66 low- and very low-rent apartments to income-qualifying individuals and couples age 62 or older. In 2023, the City entered into a cooperation agreement (Amendment 1, Amendment 2) 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, religion, color, national origin, sex - including gender identity and sexual orientation, disability, and familial status) under fair housing laws. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 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 Marin County Board of Supervisors (BOS). In June, the BOS will hold a public hearing and act on the funding recommendations from the City of San Rafael and the PSC. Following BOS action, the recommendations will be submitted to HUD. Timeline for 2024 Funding Cycle Priority Setting Committee – Application Review Workshop April 4, 2024 San Rafael City Council Meeting May 6, 2024 Priority Setting Committee – Funding Allocation Hearing May 16, 2024 Marin County Board of Supervisors Public Hearing June 4, 2024 Applications for 2024-25 funding opened on Monday, January 22, 2024, and were accepted until Friday, February 16, 2024, at 5:00 P.M. Application information sessions were held via Zoom on Wednesday, January 24, 2024, for potential applicants to learn more about the application process and types of eligible projects. Additionally, County staff held office hours on Thursday, February 1st, 8th, and 15th, 2024 via Zoom and were available throughout the application process to consult with organizations one-on-one. Community outreach to inform the public of the funding opportunity included two public notices sent to over 4,200 nonprofit and community member subscribers on December 22, 2023, and January 22, 2024. A public notice ran in the Marin IJ on December 22, 2023, informing the public of the upcoming funding application. Further, on January 19th, the County issued a press release to over 80 media outlets. ANALYSIS The CDBG program has 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. Federal regulation requires that the majority of funds be spent on housing and community infrastructure/capital projects. Evaluation Guidelines All applications were evaluated based on the following criteria. 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. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 PSC Enhanced Thresholds: • Affirmatively further fair housing and have the commitment and capacity to engage in affirmative marketing.1 • Serve members of the protected classes as defined by HUD. • 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? • Impact – Prioritize projects with the greatest impact. In addition to the criteria set forth by HUD, the PSC established two additional priorities for funding CDBG projects: • Family Housing2 • 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 established the following priorities for public services projects: • Basic Health Services that prevent or treat medical conditions for individuals who are un- insured, under-insured, or low-income and 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 that target low-income families and address disparities in access to early childhood education, high costs of childcare countywide, 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 support. • Food Security 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. 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 grants contribute to the creation of new family housing units. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 • Housing Support 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. Due to delayed budget approvals at the federal level, the County has not yet received final notice of the 2024-25 CDBG program allocation amount. The following recommendations are based on presumed level funding from the prior year of $1,589,600. The recommendations are subject to adjustments necessary to accommodate any changes in the final allocation given to the County of Marin by the federal government. The CDBG funding available for the San Rafael Planning Area, as determined by the HUD formula included in the cooperative agreement, is $475,000. Per HUD regulation, a maximum of $60,000 can be used for public services, a minimum of $204,000 must be spent on housing, and the remaining $211,000 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. Applications received by the County for all planning areas for funding in the current round can be accessed online via the following links: Housing Projects, Community Infrastructure/Capital Projects, Public Services Projects, Addendum 1 – Missing and Supplemental Application Materials. Housing Projects Six housing projects applied for funding from the San Rafael Planning Area. The projects have a combined funding request of $2,109,552. • Four projects are countywide and will result in units or services available to current San Rafael residents. • Two projects are based in San Rafael, with a total funding request of $532,195. In accordance with CDBG guidelines, a minimum of $204,000 must be spent on housing projects. The funding recommendation totaling $290,000 is as follows: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 Table 1: Housing Project Funding Applications Project Prior Year Funding FY 2024- 2025 Request Other Agency Funding Recommendation Priority Setting Committee Recommendation for San Rafael Expected Total CDBG Allocation * Art Works Downtown Electrical Upgrade Project - $332,195 - $200,000 $200,000 * Canal Alliance - 153 Novato St Rehabilitation $200,000 $200,000 - - - Eden Housing, Inc. (CHDO) - Point Reyes Coast Guard $148,291 $650,000 - - - Habitat for Humanity Greater San Francisco Habitat Redwood Blvd - $650,000 $222,000 $75,000 $297,000 Marin Center for Independent Living Residential Access Modification Program - $45,000 $30,000 $15,000 $45,000 Pep Housing / Demson Development Marin Vista Residences - $650,000 - - - * San Rafael-only request $290,000 Electrical Upgrade Project (Art Works Downtown) completes the electrical system renovation at this historic property on Fourth Street, offering 17 affordable rental units in downtown San Rafael. Funding sources for this work are limited, and Art Works Downtown has fundraised and invested the organization’s own funds into ensuring the building’s integrity. Art Works Downtown has bypassed hiring staff to weatherproof the building envelope to prepare for the next phase of replacing the extremely outdated knob-and-tube wiring. Redwood Blvd. (Habitat for Humanity Greater San Francisco) is a homeownership development of 80 affordable single-unit homes on land donated by PG&E in northern Marin. The housing units will be available to the regional population throughout Marin County, including San Rafael. This is the largest affordable homeownership project in Marin, and infrastructure costs are high. The organization is seeking funding to support infrastructure development costs. The project is fully entitled. Residential Access Modification Program (Marin Center for Independent Living) offers home access modifications, including ramps, grab bars, and stair lifts, to increase housing accessibility for people with disabilities, allowing them to remain in their homes. This is the only program of its type and is available to renters as well as homeowners. Capital Projects Four community infrastructure and capital projects applied for funding from the San Rafael Planning Area. The projects have a combined funding request of $670,000. • Three projects are countywide and will result in services available to current San Rafael residents. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 • One project is based in San Rafael, with a total funding request of $350,000. In accordance with CDBG guidelines, up to $211,000 may be spent on capital or housing projects. The funding recommendation totaling $125,000 is as follows: Table 2: Capital Project Funding Applications Project Prior Year Funding FY 2024- 2025 Request Other Agency Funding Recommendation Priority Setting Committee Recommendation for San Rafael Expected Total CDBG Allocation * Canal Alliance Proposed pedestrian hybrid beacon across Grand Ave between Francisco Blvd and 2nd St in San Rafael $200,000 (Housing) $350,000 - $125,000 $125,000 Benevolence: A communication Wellness Café The BlackStage Xperience - $30,000 - - - Hamilton Community Church of the Nazarene Project Bethany - $50,000 - - - WeeCare, Inc. (DBA Upwards) Boost (Business Operation & Optimization Support Tools) - $240,000 - - - * San Rafael-only request $125,000 Proposed pedestrian hybrid beacon and walkway (Canal Alliance) supports the construction of a pedestrian crosswalk at Canal Alliance’s new facility located between Francisco Boulevard and Second Street in San Rafael. The project will enhance pedestrian safety in accessing services on this very busy road, which does not currently have any traffic controls near this location. The funding is intended to be paired with other available sources. Public Services The County expects an allocation of approximately $60,000 for public services in 2024-25 for the San Rafael Planning Area. This allocation is based on 15% of the total entitlement available through CDBG for public services. 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. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 11 projects applied for public services funding from the San Rafael Planning Area. The projects have a combined funding request of $540,000. • Ten projects are countywide and will result in services available to current San Rafael residents. • One project is based in San Rafael, with a total funding request of $25,000. All projects that received funding in the previous year are being recommended at the same funding level. The funding recommendation totaling $60,000 is as follows: Table 3: Public Service Funding Applications Program Prior Year Funding FY 2024-25 Request Other Agency Funding Recommen dation Priority Setting Committee Recommendation for San Rafael Expected Total CDBG Allocation * City of San Rafael/ Pickleweed Preschool Pickleweed Preschool $23,000 $25,000 - $23,000 $23,000 Benevolence: A Communication Wellness Café The BlackStage Xperience - $30,000 - - - ** Fair Housing Advocates of Northern California Fair Housing Counseling and Education $65,000 $85,000 - - $65,000 Front Porch Communities Foundation Home Match Marin $15,000 $20,000 $8,000 $7,000 $15,000 Make it Home Pilot Furniture Pick-Up and Delivery Program - $65,000 - - - Marin YMCA Expanding Affordable Childcare through YMCA Elementary Aged Programs - $30,000 $10,000 $13,000 $23,000 Mental Health Advocates of Marin/ Fiscally sponsored by Marin Link Enterprise Resource Center - $60,000 - - - SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8 Program Prior Year Funding FY 2024-25 Request Other Agency Funding Recommen dation Priority Setting Committee Recommendation for San Rafael Expected Total CDBG Allocation Pearl Transit Corp Oral health outreach for low-income Marin County residents - $60,000 - - - Planned Parenthood of Northern California Increasing Access to Sexual Reproductive Health Care in Marin County - $65,000 $8,000 $10,000 $18,000 Vivalon Nourish by Vivalon - $55,000 $8,000 $7,000 $15,000 Young Performers International YPI Young Musicians Scholarship Program - $45,000 - - - *San Rafael-only request **Required Fair Housing Services $60,000 Pickleweed Preschool (City of San Rafael, Pickleweed Preschool) provides preschool programming for 68 children in the Canal neighborhood. The program supports low-income families and focuses on cultural and inclusive practices, reducing disparities in access to early childhood education and preparing children and parents to enter the elementary school system. Home Match Marin (Front Porch Communities Foundation) provides a unique roommate matching service mainly used by over housed older adults and low-income renters. The program helps low- income adults such as students, low wage workers and older adults living on low, fixed incomes acquire affordable, stable housing and mitigate loneliness and social isolation. Expanding Affordable Childcare through YMCA Elementary Aged Programs (Marin YMCA) provides scholarship funds for 50 new subsidized spots for elementary students to enroll in YMCA school year and summer childcare camp programs. There are currently 75 existing elementary age students on the waitlist for these programs, primarily in Novato and San Rafael, and public funding for affordable childcare is scarce in Marin County. Increasing Access to Sexual Reproductive Health Care in Marin County (Planned Parenthood Northern California) supports the purchase of new ADA compliant exam tables and accompanying vital monitoring devices for the San Rafael Health Center. This equipment will create a more accessible, inclusive environment and increase efficiency for an organization that helps close gaps in access to sexual and reproductive healthcare for individuals who use public health insurance options or are uninsured. Nourish by Vivalon (Vivalon) provides home delivered meals to chronically ill adults who are homebound and low- or extremely low-income. Program costs have increased due to the reduced availability of complimentary meals; this funding would be used exclusively to purchase meals. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9 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 2024-25 CDBG program funding cycle come from the Fiscal Year 2024 federal budget, which runs from October 1, 2023, to September 30, 2024. 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. If the 2024-25 allocation differs, the recommendations will be adjusted proportionately as necessary, subject to program guidelines. OPTIONS: 1. Approve the CDBG funding allocations as recommended. 2. Approve alternative allocations of CDBG funding. (Funds may be shifted within categories, but the Public Services category cannot exceed $60,000.) 3. Provide other direction to staff. RECOMMENDED ACTION: Adopt a resolution recommending CDBG funding for Fiscal Year 2024-25 to the Marin County Board of Supervisors. ATTACHMENTS Attachment 1 Resolution Attachment 2 Exhibit A to Resolution: 2024-25 CDBG Project Allocations Attachment 3 2024-25 PSC Roster RESOLUTION NO. 15285 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2024-25 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 where all applications for CDBG funds are filed with the Marin County Community Development Agency, Federal Grants Division, including projects requesting San Rafael Planning Area funds; Applications are reviewed by County and City staff with recommendations from the Local Area Committee and San Rafael City Council, and final action by the County Board of Supervisors; and WHEREAS on May 6, 2024, 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 $475,000 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 6th day of May 2024, by the following vote: AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Pro Tem Hill NOES: Councilmembers: None ABSENT: Councilmembers: Mayor Kate Lindsay Lara, City Clerk Attachment 2: Exhibit A - 2024-25 CDBG Project Allocations Type Project Sponsor Project Name Total Request San Rafael Recommendation Total CDBG Allocation Housing * Art Works Downtown Electrical Upgrade Project $ 332,195 $ 200,000 $ 200,000 * Canal Alliance 153 Novato Street Rehabilitation $ 200,000 $ - $ - Eden Housing, Inc. Point Reyes Coast Guard $ 650,000 $ - $ - Habitat for Humanity Greater San Francisco Residential Rehab Loan Program $ 650,000 $ 75,000 $ 297,000 Marin Center for Independent Living Residential Access Modification Program (RAMP) $ 45,000 $ 15,000 $ 45,000 Pep Housing/ Demson Development Marin Vista Residences $ 650,000 $ - $ - Housing subtotal $ 2,527,195 $ 290,000 Capital * Canal Alliance Proposed pedestrian hybrid beacon and walkway $ 350,000 $ 125,000 $ 125,000 Benevolence: A communication Wellness Café The BlackStage Xperience $ 30,000 $ - $ - Hamilton Community Church of the Nazarene Project Bethany $ 50,000 $ - $ - WeeCare, Inc. (DBA Upwards) Boost (Business Operation & Optimization Support Tools) $ 240,000 $ - $ - Capital subtotal $ 670,000 $ 125,000 Type Project Sponsor Project Name Total Request San Rafael Recommendation Total CDBG Allocation Public Services * City of San Rafael/Pickleweed Preschool Pickleweed Preschool $ 25,000 $ 23,000 $ 23,000 Benevolence: A Communication Wellness Café The BlackStage Xperience $ 30,000 $ - $ - **Fair Housing Advocates of Northern California Fair Housing Counselling and Education $ 85,000 * * $ 65,000 Front Porch Communities Foundation Home Match Marin $ 20,000 $ 7,000 $ 15,000 Make It Home Pilot Furniture Pick-Up and Delivery Program $ 65,000 $ - $ - Marin YMCA Expanding Affordable Childcare through YMCA Elementary Aged Programs $ 30,000 $ 13,000 $ 23,000 Mental Health Advocates of Marin/Fiscally sponsored by Marin Link Enterprise Resource Center $ 60,000 $ - $ - Pearl Transit Corp Oral health outreach for low income Marin County residents $ 60,000 $ - $ - Planned Parenthood of Northern California Increasing Access to Sexual Reproductive Health Care In Marin County $ 65,000 $ 10,000 $ 18,000 Vivalon Nourish by Vivalon $ 55,000 $ 7,000 $ 15,000 Young Performers International YPI Young Musicians Scholarship Program $ 45,000 $ - $ - Public Services subtotal $ 560,000 $ 60,000 Total San Rafael funding recommendation: $ 475,000 *San Rafael only project **Required Fair Housing Services allocated off the top Sarah Bernstein Jones DIRECTOR Leelee Thomas DEPUTY DIRECTOR Marin County Civic Center 3501 Civic Center Drive Suite 308 San Rafael, CA 94903 415 473 6269 T 415 473 7880 F 415 473 2255 TTY www.marincounty.org/plan ................................................................................................................................. COMMUNITY DEVELOPMENT AGENCY HOUSING AND FEDERAL GRANTS DIVISION Countywide Priority Setting Committee Roster The committee is comprised of representatives from the Board of Supervisors, City/Town Councils, and community members from the protected classes. Name Affiliation Cathy Cortez At-Large Community Representative Vacant 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 Vacant City of Larkspur Councilmember Stephen Burke City of Mill Valley Councilmember Mark Milberg City of Novato Councilmember Rachel Kertz City of San Rafael Councilmember Melissa Blaustein City of Sausalito Councilmember Eric Lucan County of Marin Board of Supervisors Rosa Thomas Town of Corte Madera Councilmember Barbara Coler Town of Fairfax Councilmember Vacant Town of San Anselmo Councilmember Holli Their Town of Tiburon Councilmember