Report Prepared by: Laura Ivancich, Housing Program Specialist and Kimberly Nutt, Housing Program Supervisor, Housing Division/Development Services Department
Title
SUBJECT: Approval of Allocation of U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Program Resources and Approval of Associated Subrecipient Agreements with Harvest Time and Sierra Saving Grace Homeless Project for the Respective Programs Approved with the Adopted 2022 Annual Action Plan
REPORT IN BRIEF
Considers authorizing the execution of Program Year 2022-23 Community Development Block Grant (CDBG) Subrecipient Agreements with Harvest Time ($54,442) and Sierra Saving Grace Homeless Project ($1,568,065).
RECOMMENDATION
City Council - Adopt a Motion:
A. Approving an agreement for the program identified in the 2022 HUD Annual Action Plan using Fiscal Year 2022-23 CDBG funds with Harvest Time in the amount of $54,442 for the “Food 4 You” Program; and,
B. Approving an agreement for the program identified in the 2022 HUD Annual Action Plan using Fiscal Year 2022-23 CDBG funds with Sierra Saving Grace Homeless Project in the amount of $1,568,065 for the “Supportive Housing Project” Program; and,
C. Authorizing the City Manager or the Deputy City Manager to execute, and if necessary, direct staff to make minor modifications to the agreements described above and as attached, and all associated documents and exhibits; and,
D. Authorizing the Finance Officer to make necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to City staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Section 200 of the City of Merced Charter adopted City of Merced 2022 HUD Annual Action Plan, and Title 24 of the U.S Code of Federal Regulations, Part 570 (the HUD regulations concerning the governance and use of CDBG funds, including the requirements to affirmatively further fair housing included in Subpart K).
CITY COUNCIL PRIORITIES
As approved by the City Council on July 5, 2022 and budgeted with Fiscal Year 2022-23 Program Funds. The projects associated with the agreements being presented for approval align with the 2022-23 Council Goals and Priorities, in support of Housing and Homelessness programs that create affordable housing and help prevent homelessness.
DISCUSSION
Staff is requesting that Council authorize execution of two subrecipient agreements for the use of CDBG funding previously approved with the 2022 HUD Annual Action Plan in July 2022. HUD to approve the Annual Action Plan and access to the 2022-23 funding on November 13, 2022. Each organization and program are explained further below.
Following the execution of each agreement, the organizations can begin submitting invoices for reimbursement of the eligible costs described in each agreement.
As required, Housing staff has completed all National Environmental Protection Act (NEPA) environmental reviews necessary to allow Federal funds to be committed and spent on each of the projects. The subrecipients are federally recognized Section 501(c)(3) Non-Profit Organizations, as well as Public Charities under Section 170(b)(1)(A)(vi) of the Internal Revenue Service Code.
Harvest Time
Harvest Time is a non-profit organization that operates as a foodbank/food distribution program out of a local church, Calvary Assembly of God, located at 1021 R St in Merced, and whose mission is that all people in Merced should have access to food that nourishes the mind, body and spirit. The program benefits homeless and food insecure low-income individuals and families within the City of Merced.
Harvest Time applied for the 2022-23 Program Year CDBG funding assistance to be utilized for direct program staff costs, required insurance, mileage expenses, gas and electric utilities, and supplies including materials associated with the acquisition of food for the program.
Sierra Saving Grace Homeless Project
Sierra Saving Grace Homeless Project (SSG) is a 501(c)(3) nonprofit charity organization whose mission is to provide an interfaith and community-based safety net for chronically homeless individuals and families who are either underserved or not served by existing programs and services. SSG promotes a housing first approach to solving homelessness through the provision of intensive case management, advocacy, and services in recognition of the inherent worth and dignity of all persons.
SSG applied for the 2022-23 Program Year CDBG funds with the intention of acquiring a larger multi-unit property (5 or more units), to rehabilitate and rent as affordable housing to formerly homeless and/or low-to-moderate income individuals and families. If a larger multi-unit property cannot be acquired, SSG can also acquire multiple single or duplex/triplex dwellings with the funding provided. Acquisition costs will be granted to SSG, while all rehab costs will be provided as a loan.
Housing staff has completed the initial “Part 1” National Environmental Protection Act (NEPA) environmental review required to allow this project to move forward with a purchase agreement. Once a suitable property is located, staff will begin the “Part 2” site-specific review which will consider all potential physical impacts and mitigation measures required to reach environmental compliance. Completion of the Part 2 review must occur before close of escrow.
IMPACT ON CITY RESOURCES
Agreements do not require funds from the General Fund. They are all subgrants allocated in the current year budget (Fiscal Year 2022-23) and funds are available within Account 018-1301-552-29.00 (Supplies and Services).
ATTACHMENTS
1. Draft Agreement with Harvest Time
2. Draft Agreement with Sierra Saving Grace Homeless Project