Report Prepared by: Kimberly Nutt, Housing Program Supervisor, Housing Division/Development Services Department
Title
SUBJECT: Adoption of a Resolution Approving the U.S. Department of Housing and Urban Development (HUD) Consolidated Annual Performance and Evaluation Report (CAPER) for Program Year 2023-24 and Authorizing Submittal of the 2023 CAPER to HUD
REPORT IN BRIEF
Review and approve HUD assisted activities as reported in the Draft 2023 Consolidated Annual Performance and Evaluation Report (CAPER) and authorize its submission to HUD.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2024-90, A Resolution of the City Council of the City of Merced, California, Approving the 2023 Program Year Consolidated Annual Performance and Evaluation Report (CAPER); and,
B. Authorizing the City Manager to execute all documents associated with the 2023 CAPER and make any minor modifications to finalize reporting data and prepare the report for submittal to HUD before the due date; and,
C. Authorizing the Finance Officer to make any necessary budget adjustments, if any.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to modifications as specified by Council; or,
3. Refer back to staff for reconsideration of specific items as requested by Council; or,
4. Continue item to a future Council meeting that is prior to the HUD required submittal deadline of September 28, 2024 (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Sections 405, 409, 411, and 412 et seq, and pursuant to 24 CFR 91.520 (Performance Reports) et seq.
CITY COUNCIL PRIORITIES
As provided for in the 2023-2024 City of Merced adopted budget.
DISCUSSION
The Housing Division is requesting that the City Council consider approving the 2023 CAPER and authorize its submission to HUD by the due date of September 28, 2024. The 2023 CAPER reports on the program year that spanned the time from July 1, 2023, and June 30, 2024.
The CAPER describes the results of the activities and expected accomplishments identified in the previously adopted 2023 HUD Annual Action Plan, providing an assessment of these activities, a summary of actual funds spent, and outcomes achieved. The CAPER is generally viewed as a report card for how the City performed in executing its previous year’s Annual Action Plan and how the Annual Action Plan followed the 2020-2024 Five-Year Consolidated Plan. In addition, the CAPER catalogs additional activities that are funded through the Housing Division and provides staff an opportunity to highlight changes and improvements to the program that occurred over the course of the fiscal year.
The Housing Division used the following grant funding sources during the last fiscal year in working to achieve the community’s public service, housing, and community development goals:
1. Community Development Block Grant (CDBG) - Federal/HUD
2. HOME Investment Partnership Program (HOME) - Federal/HUD
3. Community Development Block Grant Coronavirus (CDBG-CV) - Federal/HUD
4. American Rescue Plan HOME Investment Partnership Program (HOME-ARP) - Federal/HUD
5. American Rescue Plan Act (ARPA) - Federal/U.S. Treasury
6. Low-Mod Asset Funds (former Redevelopment Agency) - City/Housing Successor
7. Public Facility Financing Plan (PFFP) affordable housing impact fee credits - City
8. Homekey Program - State/California Housing and Community Development (HCD)
9. CalHome Program - State/HCD
The common goal of these programs is to help make Merced a more livable community for all citizens and to guide funding toward activities that help meet those goals, especially for low- to moderate-income residents. Significant resources are used to assist individuals and households in retaining and enjoying decent, safe, and affordable housing and to provide access to social service programs that help make daily living more accessible and affordable. These resources have provided job, financial, and life skills training, food and nutrition distributions, homelessness prevention, public and park improvements and facilities, homebuyer assistance, and economic development programs.
The 2023 Annual Action Plan underwent two substantial amendment processes during the program year - the first to amend the Devonwood Apartment project to include CDBG funding for acquisition of the vacant land needed for the project, and the second to correct calculation errors that were found during the latter phase of the first amendment process which resulted in an overstatement of the available CDBG resources at that time. Both amendments necessitated the deletion of other projects in order to expedite the expenditure of CDBG funds prior to HUD’s yearly “timeliness” deadline.
During the 2023 program year, the Housing Division received $340,490.30 of HOME and $318,231.37 of CDBG program income that is being reinvested into the community with 2024 activities. At the beginning of the 2023 program year, these estimated amounts were $54,000 and $93,000, respectively.
There have been some notable accomplishments during the 2023 program year, which include:
1. With a total of $61,660 of 2023 CDBG funding assisting with operating costs such as gas/electric utilities, insurance, direct staffing, and mileage costs, Harvest Time was able to provide food distribution services to 880 households, for a total of 2,868 people.
2. Sierra Saving Grace completed rehabilitation work on 4 homes that were purchased with prior year CDBG funding, and these homes are now rented to low-income and/or formerly homeless families.
3. Sierra Saving Grace also help to prevent homelessness for 20 households (49 people) with short-term 2023 CDBG gas/electric utility, rental, and mortgage assistance through the end of September 2023.
4. Combined to date since the start of the COVID-19 pandemic, the Salvation Army and Sierra Saving Grace have used CDBG Coronavirus (CDBG-CV) funds to provide temporary short term gas/electric utility, rent, and mortgage assistance to a total of 139 households (a total of 425 people), enabling families to keep the power on and keep up on their rent or mortgage while they were experiencing a temporary loss of income due to COVID-19.
5. The 156-unit Devonwood Apartments affordable housing project successfully closed escrow on the land purchase with CDBG funding in March 2024 and, further, successfully closed escrow on all construction financing sources (including HOME, ARPA, and Sewer Enterprise Funds) in early May 2024, subsequently breaking ground later that month.
Citizen Participation Plan Requirements
In meeting its adopted Citizen Participation Plan (CPP) requirements for the annual CAPER process, the Housing Division published public notices in English, Spanish, and Hmong language on August 15 and 18, 2024, in both the Merced Sun-Star and the Merced County Times and posted notices on the Housing Division’s Public Notices webpage.
The notices advised residents of a public meeting that was to be held on the evening of Monday, August 26, 2024, where interested citizens could review the provided data regarding the year’s accomplishments and expenditures, have an opportunity learn about HUD funding, and be provided an update about current projects and those in the works.
Additionally, the notices advised residents that a 15-day Review and Comment Period would be held from Tuesday, August 27 to Wednesday, September 11, 2024, when residents would have the opportunity to review a preliminary draft of the CAPER and provide written comment as to its content.
The draft 2023 CAPER was posted on the Housing Division webpage and was available for viewing in person at the Housing Division office, as well as available to be emailed directly to requestors.
Finally, the notices also informed the public of the expected date and time of the Council meeting for which the report was scheduled for approval. A public hearing is not required per the adopted CPP prior to approval of the CAPER, but Council may choose to accept public comment prior to their action.
History and Past Actions
Each year, the City of Merced prepares an Annual Action Plan for submission to HUD for projects planned over the coming year. Then, at the end of each year, the City prepares a CAPER report that reports and assesses the efforts made over the year to carry out the respective projects. The framework for the 2023 Annual Action Plan was rooted in the 2020-2024 Consolidated Plan (Con Plan)
The Con Plan is a five-year strategy that outlines the City’s goals and expected accomplishments for pursuing the Federal, State, and local resources to meet the needs of low- to moderate-income residents. The 2023 CAPER serves to close out the fourth year of the current Con Plan period (July 1, 2020 through June 30, 2025).
On a yearly basis, the City Council is asked to approve the CAPER report and the submission of the report to HUD after holding the required public meeting and review and comment period.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed for approval of the 2023 CAPER.
ATTACHMENTS
1. Draft 2023 CAPER
2. Draft Resolution 2024-90