Report Prepared by: 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 the Associated Subrecipient Agreement with Habitat for Humanity Merced/Stanislaus Counties for their Homeowner Occupied Rehabilitation “A Brush with Kindness” Program Approved with the Adopted 2022 and 2023 Annual Action Plans
REPORT IN BRIEF
Considers approving to authorize the execution of a three-year program Community Development Block Grant (CDBG) Subrecipient Agreement with Habitat for Humanity Merced/Stanislaus Counties ($300,000).
RECOMMENDATION
City Council - Adopt a Motion:
A. Approving the agreement for the program identified in the 2022 and 2023 HUD Annual Action Plans using Fiscal Year 2022-23 and 2023-24 CDBG funds with Habitat for Humanity Merced/Stanislaus Counties in the amount of $300,000 for the “A Brush with Kindness” Program; and,
B. Authorizing the City Manager or the Deputy City Manager to execute, and if necessary, direct staff to make minor modifications to the agreement described above and as attached, and all associated documents and exhibits; and,
C. 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, the Adopted City of Merced 2022 and 2023 Annual Action Plans, and Title 24 of the U.S. Code of Federal Regulations (24 CFR), Part 570 (the HUD regulations concerning the governance and use of CDBG funds).
CITY COUNCIL PRIORITIES
As approved by the City Council on July 5, 2022, and June 5, 2023, respectively, and budgeted with Fiscal Year 2022-23 and 2023-24 Program Funds. The project associated with this agreement being presented for approval aligns with the 2022-23 and 2023-24 Council Goals and Priorities, in support of Housing programs that create affordable housing and help prevent homelessness.
DISCUSSION
Staff is requesting that Council authorize execution of this Subrecipient Agreement for the use of CBDG funding approved with the 2022 and 2023 HUD Annual Action Plans. Council and HUD both approved the three-year project with the 2022 Annual Action Plan and recently approved additional funding with the 2023 Annual Action Plan.
Habitat for Humanity Merced/Stanislaus Counties (HHMSC) is a non-profit organization currently based in Modesto, California, and has been administering the City of Merced’s Owner Occupied Rehabilitation (OOR) Program successfully for several years. Due to COVID-19 and other unforeseeable issues, HHMSC’s previous OOR program approved with the 2019 Annual Plan was unable to proceed with any new OOR project assistance. These issues have been resolved by Housing staff, and after full execution of this Agreement, will be able to restart the Program and assist the eligible homeowners that have been waiting.
This new Agreement will span a three-year period and will allow approximately nine homes to be rehabilitated over the Agreement period, which ends June 30, 2025, with total planned funding of $450,000 ($150,000 per year). The Agreement will begin with Years 1 and 2 funded (total of $300,000). Funds may be supplemented to the Agreement with next year’s 2024 Annual Action Plan after re-evaluation to determine, 1) Performance of Agreement - if rehab projects have moved forward as planned with the initial $300,000; then, 2) if any of the planned 2024 funding is needed over Year 3 to finish out the program.
The “A Brush with Kindness” program provides low- to moderate-income homeowners an opportunity to complete essential life, health, and safety-related interior and exterior repairs of their homes, up to $50,000 maximum total costs. The rehabilitation of these properties may include things such as replacing failing central heat and air conditioning units, dry rot repair, replacing leaking roofs, lead paint abatement, structural repair, energy upgrades including replacement of windows, replacing water heaters, electrical and plumbing repairs, and any other necessary repairs and improvements to the residential units to sustain the owner’s housing.
As required by the administration of the City’s CDBG funds, Housing staff has completed the National Environmental Protection Act (NEPA) Broad Level (Tier 1) environmental review necessary to obtain initial environmental clearance that allows the program to begin accepting and processing assistance applications. Once homeowners complete the initial screening, a “Tier 2” Site Specific NEPA review will be completed by Housing staff for each home prior to the start of rehab work and expenditure of funds.
IMPACT ON CITY RESOURCES
This Agreement does not require any expenditures from the General Fund. This is a subgrant allocated in the prior year budget (2022-23) and current year budget (2023-24) and funds are available within Fund 2501-Community Development Block.
ATTACHMENTS
1. Agreement with Habitat for Humanity Merced Stanislaus Counties