FY 2019-2020 A NNUAL A CTION P LAN -- CDBG-CV FUNDS City Council - - PowerPoint PPT Presentation

SUBSTANTIAL AMENDMENT TO THE FY 2019-2020 ANNUAL ACTION PLAN -- CDBG-CV FUNDS

City Council Meeting June 16, 2020

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BACKGROUND

• The CARES Act provides $5 billion in Community Development Block

Grant (“CDBG”) funds

• The money is to assist “America’s low-income families and most

vulnerable citizens”

• On April 2, 2020, HUD notified the City that it will receive $668,658 in

Community Development Block Grant – Coronavirus (“CDBG-CV”) funds

• City must amend the current Citizen Participation Plan and the current

2019-2020 Annual Action Plan to use CDBG-CV funds

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BACKGROUND

• The CARES Act provides flexibility for the use of CDBG-CV funds

intended to “cut red tape” and eliminate regulatory barriers that may limit the use of these funds

• Program flexibility is provided via regulatory guidance and waivers
• Examples of program flexibility received to date include the following:
• Public comment period for Consolidated Plan/Action Plan

substantial amendments is reduced from 30 to 5 days

• Allows for alternate means of public participation (e.g., virtual

meetings)

• Eliminates the 15 percent cap on public service grant funding

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BACKGROUND

• The CARES Act requires that CDBG-CV funds be used for activities

that prepare, prevent, or respond to the impacts of the Coronavirus, and must meet one of the three National Objectives required by CDBG regulations:

• Benefit low-and-moderate income persons.
• Aid in the prevention or elimination of blight.
• Meet an urgent need
• CDBG-CV funds may not be used to pay costs if “another source of

financial assistance is available to pay that cost”

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BACKGROUND – CITIZEN PARTICIPATION PLAN AMENDMENT (CPP)

• The CPP outlines the actions the City takes to encourage public

participation in the City’s HUD programs, including amending HUD-related plans

• The current CPP was approved as part of the 2015-2019 Consolidated

Plan in May 2015

• As required, the CPP is proposed to be amended to include disaster/

emergency procedures as well as specific provisions permitted by the initial CARES Act waivers

• Included is implementation of the 5-day comment period for the

proposed amendment and virtual hearings for approval of amendments

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ANALYSIS

• To date, HUD has issued three waivers for the CDBG-CV
• program. Previously discussed, these include:
• The public comment period for Consolidated

Plan/Action Plan substantial amendments is reduced from 30 to 5 days

• Allows for alternate means of public participation (e.g.,

virtual meetings)

• Eliminates the 15 percent cap on public service grant

funding.

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PROPOSED ALLOCATION

CDBG-CV Allocation $668,658 Program Options CDBG-CV Funding % of CDBG-CV Funds 1. Homeless Services $568,358 85%

• 2. CDBG-CV Administration

$100,300 15% Total: $668,658 100%

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PREVENTION & HOMELESS SERVICES

• Homeless services would consist of the following activities intended to

address issues related to and exacerbated by the COVID-19 pandemic:

• Street outreach activities to unsheltered populations
• Response to neighborhood and business locations to mitigate

impacts of street homelessness, including transportation

• Intakes for sheltering, family reunification and housing

placement assistance for homeless persons

• Enhancing shelter operations to ensure preventative measures

are successful, including hygiene and facility cleaning supplies, food, and other facility operational costs

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CDBG-CV ADMINISTRATION

• Implementation of the CDBG-CV program will result in administrative

costs that are above normal administrative costs

• These expenditures include costs related to monitoring sub-recipients,

preparing plans and reports, legal costs (e.g., preparation of CDBG- CV specific agreements), and accounting services costs (e.g., additional auditing services)

• CDBG grantees can allocate up to 20% of grant funds for program

administration – staff is recommending an allocation of 15% for CDBG-CV administration

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RECOMMENDATIONS

• Approve the Amended City of Costa Mesa Citizen Participation

Plan

• Approve the recommended allocation of $668,658 in Community

Development Block Grant-Coronavirus funds

• Authorize the City Manager, or the City Manager’s designee, to

submit the Substantial Amendment to the 2019-2020 Annual Action Plan to the U.S. Department of Housing and Urban Development

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RECOMMENDATIONS (CON’T)

• Approve a Resolution order to:
• Approve the Substantial Amendment to the 2019-2020 Annual Action

Plan

• Approve the amendments to the City of Costa Mesa Citizen

Participation Plan

• Authorize the City Manager, or the City Manager’s designee, to

submit the Substantial Amendment to the 2019-2020 Annual Action Plan to the U.S. Department of Housing and Urban Development

• Designate the City Manager, or the City Manager’s designee, as the
• fficial representative of the City to sign all certifications and

assurances, and sub-agent agreements for the use of funds approved in the Substantial Amendment to the 2019-2020 Annual Action Plan

SUBSTANTIAL AMENDMENT TO THE FY 2019-2020 ANNUAL ACTION PLAN -- CDBG-CV FUNDS

City Council Meeting June 16, 2020