Special Notice / Hearing: Public Hearing
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Interim Director, Housing
Subject: FY 2020-2021 Annual Action Plan for Housing and Community Development
RECOMMENDATION:
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Public hearing regarding the FY 2020-2021 Annual Action Plan for Housing and Community Development:
A) Open public hearing
B) Close public hearing
C) Adopt a resolution:
1. Approving and accepting the Fiscal Year 2020-2021 Annual Action Plan of Housing and Urban Development Entitlement Awards for Community Development Block Grant, HOME Investment Partnerships, and Emergency Solutions Grants; and
2. Authorizing the Director of the Department of Housing or the Director's designee to submit the Fiscal Year 2020-2021 Annual Action Plan, the related certifications, and all understandings and assurances contained therein to HUD, to take all necessary actions in connection with the submission of the Action Plan, including providing additional information that the United States government may require, and to execute contracts, as approved by County Counsel, for the programs and projects as indicated in the Annual Action Plan.
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BACKGROUND:
The County of San Mateo (the “County”) receives funding allocations from the United States Department of Housing and Urban Development (“HUD”) under three programs: Community Development Block Grant (“CDBG”), HOME Investment Partnerships (“HOME”), and Emergency Solutions Grants (“ESG”). To receive these funds, the County is required to submit a Consolidated Plan (the “ConPlan”) to HUD every five years, and an Annual Action Plan (“Action Plan”) each year that delineates allocations of the HUD funding to specific local projects, and reports outcomes attributable to these expenditures. These required documents serve both as an application for funds and a local policy statement.
The national goals of the ConPlan are three-fold: (1) the provision of decent affordable housing, (2) the provision of a suitable living environment, and (3) the expansion of economic opportunities. Within this framework, HUD encourages local jurisdictions to tailor objectives and outcomes to local needs and conditions. CDBG funds are provided directly to five jurisdictions in the County: the City of Daly City, the City of South San Francisco, the City of San Mateo, the City of Redwood City, and the County.
As lead for the HUD-designated Urban County, the County receives CDBG funds on behalf of 16 smaller cities within the County and on its own behalf. The County also receives HOME funds on behalf of the San Mateo County HOME Consortium which includes San Mateo County, the City of South San Francisco, and the City of San Mateo. The City of Redwood City and the City of Daly City are not members of the San Mateo County HOME Consortium and receive HOME funding directly.
ESG funds are provided to the County as the sole recipient for countywide distribution.
DISCUSSION:
The County of San Mateo (the “County”) receives funding allocations from the United States Department of Housing and Urban Development (“HUD”) under three programs: Community Development Block Grant (“CDBG”), HOME Investment Partnerships (“HOME”) and Emergency Solutions Grants (“ESG”). To receive these funds, the County is required to submit a Consolidated Plan (the “ConPlan”) to HUD every five years, and an Annual Action Plan (“Action Plan”) each year that delineates allocations of the HUD funding to specific local projects, and reports outcomes attributable to these expenditures. These required documents serve both as an application for funds and a local policy statement.
The national goals of the ConPlan are three-fold: (1) the provision of decent affordable housing, (2) the provision of a suitable living environment, and (3) the expansion of economic opportunities. Within this framework, HUD encourages local jurisdictions to tailor objectives and outcomes to local needs and conditions. CDBG funds are provided directly to five jurisdictions in the County: the City of Daly City, the City of South San Francisco, the City of San Mateo, the City of Redwood City, and the County.
As lead for the HUD-designated Urban County, the County receives CDBG funds on behalf of 16 smaller cities within the County and on its own behalf. The County also receives HOME funds on behalf of the San Mateo County HOME Consortium which includes San Mateo County, the City of South San Francisco, and the City of San Mateo. The City of Redwood City and the City of Daly City are not members of the San Mateo County HOME Consortium and receive HOME funding directly.
ESG funds are provided to the County as the sole recipient for countywide distribution.
DISCUSSION:
The Action Plan links national objectives to local project and program priorities, providing necessary context and justification for local decisions regarding the use of federal funds. The ConPlan focuses on expenditures in projects that are financially and politically feasible and in projects and programs that strengthen organizational partners and attract or leverage additional funding. Impact is measured by numbers of low-income residents and households served.
Four overarching principles govern the County’s administration of HUD entitlement funding: process, accountability, transparency, and collaboration. In accordance with these principles, the County launched an annual process with a public priorities-setting meeting in November 2016 presided over by the Housing and Community Development Committee (“HCDC”), the public advisory body for making funding recommendations to the Board of Supervisors (“Board”). The related ConPlan was submitted to Board in April 2018 for approval for HUD submission and that approval was obtained (Reso No. 075840) This year 3 of 5 years of annual plans being submitted to Board for approval. A study session was held in February 2020 with the HCDC, followed by an HCDC public meeting with applicants. Today’s public hearing concludes the Community Participation Process, after which the Action Plan will be submitted to HUD for review and approval on or about May 30, 2020.
HUD entitlements to the County over the past 20 years showed a marked decline, from a high of $5.1 million in 1994-95 to $3.45 million for FY 2020-21, which represents flat funding from the prior year (FY 2019-20). Table 1 summarizes the 2020-2021 Sources and Uses including the new entitlement, any unused prior year funding and expected program income (primarily from loan payments). Table 1 sources include a contribution from the CDBG Revolving Loan fund balance. This will be year one of two-year agreements for all public service, housing rehab programs, micro-enterprise development, fair housing, and shelter operations, and will be one-time only funding for housing development and public facilities. Total available funding in FY 2020-2021 has neither increased, nor decreased, but remains flat, except for public facilities funding, which decreased.
The attached Action Plan details specific activities recommended for funding as set out in the table below:
On April 2, 2020, the County received a special allocation in the amount of $1,570,637 CDBG funds and $799,531 ESG funds to be used to prevent, prepare for, and respond to the coronavirus pandemic (COVID-19). These allocations were authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, which was signed on March 27, 2020, to respond to the growing effects of this historic public health crisis. HUD will be providing further direction that will lay out the CARES Act provisions and administration of these special funds. When the County determines how to best utilize these funds, the Action Plan will need to be amended accordingly.
In order to receive HUD entitlement funds, the County must submit pro forma certifications to HUD assuring that the County: (1) will not discriminate in providing services; (2) is following a citizens’ participation process (now known as a community participation process); (3) is providing a drug-free workplace for staff; and (4) has adopted and is enforcing a policy prohibiting the excessive use of force against individuals engaged in non-violent civil rights demonstrations.
The Board is being asked to approve and accept the Action Plan, authorize the Director of Housing or the Director’s designee, to submit the certifications and Action Plan to HUD, and to execute contracts, as approved by County Counsel, for the FY 2020-2021 programs and projects as indicated.
County Counsel has reviewed and approved the resolution as to form.
FISCAL IMPACT:
There is no net County cost. The Annual Action Plan activities are included in the Department of Housing Budget for FY 2020-2021.