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File #: 23-792    Version: 1 Name:
Type: Report Item Status: Passed
File created: 9/5/2023 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 9/18/2023 Final action: 9/18/2023
Title: SUBJECT: Report and 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 2022-23 and Authorizing Submittal of the CAPER to HUD REPORT IN BRIEF Review and approve Housing Division activities as reported in the Draft 2022 Consolidated Annual Performance and Evaluation Report (CAPER) and authorize its submission to HUD. RECOMMENDATION City Council - Adopt a motion: A. Adopting Resolution 2023-75, A Resolution of the City Council of the City of Merced, California, Approving the 2022-2023 Program Year Consolidated Annual Performance and Evaluation Report (CAPER); and, B. Authorizing the City Manager or Deputy City Manager to execute and, if necessary, direct staff to make minor modifications to, the above referenced items and all associated documents as attached to this report; and, C. Authorizing the Finance Officer to make necessary budget adjustments, if any.
Attachments: 1. Draft 2022-23 CAPER Report, 2. Council Presentation, 3. Draft Resolution

Report Prepared by: Kimberly Nutt, Housing Program Supervisor, Housing Division/Development Services Department

 

Title

SUBJECT: Report and 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 2022-23 and Authorizing Submittal of the CAPER to HUD

 

REPORT IN BRIEF

Review and approve Housing Division activities as reported in the Draft 2022 Consolidated Annual Performance and Evaluation Report (CAPER) and authorize its submission to HUD.

 

RECOMMENDATION

City Council - Adopt a motion:

 

A.  Adopting Resolution 2023-75, A Resolution of the City Council of the City of Merced, California, Approving the 2022-2023 Program Year Consolidated Annual Performance and Evaluation Report (CAPER); and,

 

B.  Authorizing the City Manager or Deputy City Manager to execute and, if necessary, direct staff to make minor modifications to, the above referenced items and all associated documents as attached to this report; and,

 

C.  Authorizing the Finance Officer to make 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, 2023 (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 2022-2023 City of Merced Adopted Budget

 

DISCUSSION

Staff is requesting that the Council consider approving the 2022-23 CAPER and authorize its submission to HUD by the due date of September 28, 2023.

 

The CAPER describes the results of the activities and expected accomplishments identified in the previously adopted 2022 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 housing and community development goals:

 

1. Community Development Block Grant (CDBG) - Federal

2. HOME Investment Partnership Program (HOME) - Federal

3. Community Development Block Grant Coronavirus (CDBG-CV) - Federal

4. American Rescue Plan HOME Investment Partnership Program (HOME-ARP) (Administrative Funds only) - Federal

5. California Housing and Community Development (HCD) CalHome Program - State

6. Program Income (generated from loan payoffs and property resales that originated from Federal and State funding sources)

 

The common goal of these programs is to make Merced a more livable community for all citizens and to guide funding to activities that help meet that goal. Significant resources are used to assist individuals and families in retaining and enjoying decent, safe, and affordable housing. Other community development efforts have targeted job, financial, and life skills training, food/nutrition programs, public improvements and neighborhood facilities, and economic development.

 

The 2022-23 year continued and wrapped up the catch-up work from previous year COVID-19 pandemic-related delays and the resulting overlapping of subrecipient public services organization programs from one program year to the next, and all public service programs are now current.  Infrastructure projects identified and budgeted for in the 2021 and 2022 Annual Plan are continuing to progress.

 

There have been some notable accomplishments from the 2022-23 year, which include:

 

1.                      During the 2022-23 program year, the Housing Division received $264,033 of HOME program income that will be re-invested back into affordable housing projects during the next program year (2023-24).  At the beginning of the year, the estimated amount to be received was $66,000.

2.                      Through HOME administrative funding of $30,000, Project Sentinel, Inc. provided fair housing services to Merced City residents through 10 case investigations that benefitted 34 residents and provided information, intake, and referral services that helped another 114 residents.  Project Sentinel organized or attended local outreach events and public meetings, met regularly with tenant advocacy groups, conducted formal presentations, attended all three of the City’s 2023 Town Hall Meetings, and provided vital services to the City during the January 2023 floods.  1,986 fair housing education mailers and over 250 brochures were distributed over the course of the program year.

3.                      By June 2023, with a total of $54,442 of 2022 CDBG funding assisting with the organization’s operating costs such as utilities, direct staffing, and insurance, Harvest Time was able to provide vital food distribution services to 224 low- to moderate-income City households, for a total of 810 people.  Additionally, the 2020/2021 project to replace walk-in cold storage units was completed in November 2022, resulting in lowered energy bills for the organization.

4.                      To date, Sierra Saving Grace Homeless Project and the Salvation Army Coronavirus Community Development Block Grant (CDBG-CV) rental, mortgage, and gas/electric utility assistance programs together have assisted more than 92 households (a total of 263 people) keep their housing and essential gas and electric utilities payment current after experiencing Coronavirus-related income loss.

5.                      Sierra Saving Grace was able to assist another 23 households (64 people) with rent, mortgage, and utility assistance through $32,730 of regular 2022 CDBG program funds.

6.                      The 119-unit Childs Court Apartments/Childs and B Street Affordable Housing Project received final Certificate of Occupancy on all buildings on August 18, 2022, at the start of the program year (units reported in this year’s CAPER).  The project used funding sources funding sources from Federal and State Grant Award, State Tax Credit, City, and other local funding and broke ground in January 2021. The project counts towards meeting the City’s State Regional Housing Needs Assessment (RHNA) requirements.

7.                     Sierra Saving Grace and the Merced Rescue Mission were able to successfully finish purchase and rehabilitation projects on four units of permanent supportive housing over the course of the year, then housed four low-income tenant households in those units.  These were units that were purchased with prior year funding that were affected by COVID-related delays and an extremely competitive housing market.

8.                     The City’s HOME-ARP Allocation Plan was approved by HUD on April 11, 2023, for use of the $1,988,778 HOME-ARP funds that were allocated to the City by the American Rescue Plan Act of 2021.  This means that the City can now use these funds towards an eligible rental housing project, after all environmental clearances and other required processes.

 

Citizen Participation 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 languages on July 20, 2023, in both the Merced Sun-Star and the Merced County Times and posted notices on the Housing Division’s Public Notices webpage the same day.

 

The notices advised residents of a public meeting that was to be held on the evening of Thursday, July 27, 2023, where interested citizens could review provided data regarding the year’s accomplishments and expenditures and be provided an update as to the Housing Division projects.

 

Additionally, the notices advised residents that a 15-day Review and Comment Period would be held from Friday, August 18, 2023, to Friday, September 1, 2023, when residents would have the opportunity to review a preliminary draft of the CAPER and provide any written comment as to its content. The Review and Comment Period was extended an additional 7 days, through Friday, September 8th, to accommodate the Labor Day holiday and additional time needed to present a comprehensive draft report.  Housing Staff did not receive any written comments or other CAPER-related inquiries during the comment period.

 

The Draft 2022 CAPER was posted on the Housing Division webpage and was available for viewing in-person at the Housing Division office. The notices published in the newspapers provided links to the report and the Housing Division webpage, and email links to submit comment, as well as the Housing Division phone number and the physical address of City Hall.

 

The notices also informed the public of the 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 further public comment prior to their final motion.

 

History and Past Actions

 

Each year, the City of Merced prepares an Annual Action Plan for submission to HUD, and at the end of each year, prepares a CAPER report to assess efforts made over the year. The framework for the 2022 Annual Action Plan finds its roots in the 2020-2024 Consolidated Plan.

 

The Consolidated Plan is a five-year strategy that outlines the City’s goals and expected accomplishments for pursuing the use of Federal, State, and local resources to meet the housing and community development needs of low- and moderate-income residents. This report serves to close out the third year of the current Consolidated Plan period (July 1, 2020 - 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 prior to the report being prepared and after making the initial draft of the report available to the public to review and provide their comment on.

 

IMPACT ON CITY RESOURCES

No appropriation of funds is needed for approval of the 2022-23 CAPER.

 

ATTACHMENTS

1.  Draft 2022-23 CAPER

2.  Council Presentation

3.  Draft Resolution 2023-75