To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Departmental
SUBJECT:
title
Submission of a Grant Application to The California Department of Housing and Community Development’s Community Development Block Grant Program 2020-2021 Funding Round
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Adopt attached Resolution (Resolution 21-__) (Attachment 1) doing the following:
a. Approving an application for funding to be submitted to the Department of Housing and Community Development (HCD) for the 2020 - 2021 Community Development Block Grant Program (CDBG) in an amount not to exceed $895,050.
b. Authorizing and directing the Planning and Building Department Director to execute, in the name of the County of Humboldt, the application, the Standard Agreement, and all other documents required by HCD for participation in the CDBG Program, and any amendments.
Body
SOURCE OF FUNDING:
The California Department of Housing and Community Development (HCD) Community Development Block Grant (CDBG) 2020-2021 allocation and CDBG Program Income. Funds allocated to Advanced Planning (1100-282).
DISCUSSION:
On Jan. 29, 2021 the California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) for the Community Development Block Grant (CDBG) 2020-2021 funding round. HCD will be accepting applications until April 30, 2021. HCD will be distributing this funding to non-entitlement jurisdictions on a competitive basis. Humboldt County will compete statewide with non-entitlement jurisdictions for approximately $30 million in this round of CDBG funding. Humboldt County is eligible to apply for up to $1,500,000 under the CDBG 2020-2021 NOFA.
The CDBG 2020-2021 NOFA allows jurisdictions to apply for up to three activities. This year allowable activities in the Community Development silo include: Public services up to $500,000, Homebuyer Assistance up to $500,000, Housing Rehabilitation up to $500,000 and Planning and Technical Assistance up to $250,000. Economic Development Activities may include Business Assistance Loans Applicants up to $500,000, Microenterprise Assistance up to $250,000, and Infrastructure in support of Business up to $1,500,000.
Eligible activities must meet one of three CDBG national objectives. The national objectives include: benefit to low-moderate income individuals, aid in the prevention of slums or blight, and to meet an urgent need. In addition, an eligible activity must document site control. This NOFA allows up to three activities per jurisdiction.
On Friday, March 5, 2021 Planning and Building held a duly noticed public meeting to discuss the funding available under the 2020-2021 CDBG NOFA and to solicit project ideas from the community. Six proposals have been submitted for consideration. Of those proposals three meet the eligibility criteria specified in the NOFA. The proposals in the order received:
1. Solar PV & Energy Storage Training Program: Proposed by Jeffery Trirogoff, Elements of Earth and Energy. This proposal did not meet CDBG criteria for national objective, and the county cannot apply for CDBG funds in conjunction with a for-profit entity. Staff suggests that the proposer contact the Workforce Development Board (WDB) to explore other funding streams and programs to develop this job training program.
2. Hoopa Valley Community Development Association (CDA) Home Repair Program: The proposal was to make repairs on residences on tribal holdings in Hoopa Valley Tribal Reservation. CDBG funds directed towards non-entitlement jurisdictions, like Humboldt County, cannot be used to directly assist federally recognized Indian tribes. Federally recognized Indian tribes can apply directly to the Department of Housing and Urban Development’s Indian Community Development Block Grant Program (ICDBG). The county operates an Owner-Occupied Rehabilitation Loan Program that can assist homeowners on fee parcels in Hoopa. These loans can make needed repairs and improvements like the ones described in the proposal. Staff offered technical assistance to the Hoopa Valley Community Development Association when they receive funding from the ICDBG program to conduct this activity.
3. Humboldt Senior Resource Center (HSRC) Mental Health Behavioral Health Services: This public services proposal will provide behavioral health services to Humboldt County senior citizens and thus meets the CDBG national objective of a low-moderate income clientele (LMC). The program will augment the Redwood Coast PACE program by providing required wrap-around care for seniors. As the program gains traction, it will be sustained by Medicare and fee-for-service funding.
4. Humboldt County Homebuyer Assistance Loan Program: The County is ramping up a First Time Homebuyer Loan Program that makes loans to households earning less than 80% of the area median income. This meet the CDBG National objective of low-moderate income clientele (LMC) through HUD approved income qualification. CDBG funding will expand this program and will allow the county to make four or five additional loans to homebuyers. CDBG program guidelines allow acquisition with rehabilitation and do not require first time buyers. This funding would allow the County more flexibility in the lending program.
5. Humboldt County Affordable Housing Site Planning: This project will prepare plans for a housing development that will be affordable to persons with incomes at or below 60% of the area median. The county-owned parcel is complicated by steep slopes and wetlands but is slated for the development of 18 housing units under the county’s multifamily housing inventory. Plans will be developed for property ingress/egress, utilities, parking, accessibility, building size and layout, as well as the design of facilities to comply with Low-Impact Development standards (stormwater retention). Plans will be evaluated by a qualified biologist, ultimately resulting in a development that will minimize impact to wetlands. Optional task items will address the encroachment of structure from a neighboring property as well as building plans for the housing units.
6. Groundwork - Building Lives by Building Structure: This proposal involves training residents in construction skills while building modular residency units at a site on the Hoopa Valley Tribal Reservation. This proposal lacked site control documentation for the leased training site, did not meet CDBG criteria for national objective, and was therefore ineligible for CDBG funding. CDBG does not generally fund job skills training; Staff suggests that the proposer contact the Workforce Development Board (WDB) to explore other funding streams and programs such as the ICDBG program to develop this job training program.
County Staff conducted a proposal evaluation process and recommend the following projects for funding:
1. Humboldt Senior Resource Center (HSRC) Mental Health Behavioral Health Services $145,045
2. Humboldt County Affordable Housing Site Planning $250,000
3. Humboldt County Homebuyer Assistance Loan Program $500,000
These three activities, plus allowable administration, will total $895,050.
Program Administration: The department will apply for up to 7% of the grant to manage the program. Proposed amount not to exceed $62,653.
FINANCIAL IMPACT:
This action solicits grant funds from the State of California. Salary and benefits costs are covered by the grant while other costs will be covered by the General Fund allocation in the Advanced Planning Division (1100-282).
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by protecting vulnerable populations.
OTHER AGENCY INVOLVEMENT:
California Department of Housing and Community Development.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may decide not to apply for the CDBG 2020-2021 funds; or the Board may choose to approve different proposals.
ATTACHMENTS:
1. Draft Resolution Approving an application for funding to be submitted to the Department of Housing and Community Development (“HCD”) for the 2020-2021 Community Development Block Grant Program in an amount not to exceed $895,050.
PREVIOUS ACTION/REFERRAL:
Board Order No.: none
Meeting of:
File No.: Click or tap here to enter text.