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 2021-22 and Authorizing Submittal of the CAPER to HUD
REPORT IN BRIEF
Review and approve Housing Division activities as reported in the Draft 2021 Consolidated Annual Performance and Evaluation Report (CAPER) and authorize its submission to HUD.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2022-59, A Resolution of the City Council of the City of Merced, California, approving the 2021-2022 Program Year Consolidated Annual Performance and Evaluation Report; and,
B. Authorizing the City Manager or Deputy City Manager to execute and, if necessary, make minor modifications to, the above-reference 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. Deny the request completely; or,
4. Refer back to staff for reconsideration of specific items as requested by Council; or,
5. Continue item to a future Council meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 405, 409, and 411 et seq, and Pursuant to 24 CFR 91.520 (Performance Reports) et seq.
CITY COUNCIL PRIORITIES
As provided for in the 2021-2022 City of Merced Adopted Budget.
DISCUSSION
Staff is requesting that the Council consider approving the 2021-2022 Consolidated Annual Performance and Evaluation Report (CAPER) and authorize its submission to HUD by the due date of September 28, 2022.
The CAPER is a specific annual reporting requirement of the U.S. Department of Housing and Urban Development (HUD), since Merced is an entitlement community for distribution of annual HUD funds. Separately, the City also complies with requirements of the State of California Department of Housing and Community Development (HCD). Those include the annual Housing Element Update, which is utilized by the State to track progress on housing units constructed within the City as part of the Regional Housing Needs Allocation (RHNA). The CAPER does also include discussion of policy and program information implemented by the City, even though not specifically a HUD Action Plan item. These help demonstrate the overall policy and program activities undertaken by the City, which often support the goals identified in the Annual Plan.
The CAPER describes the results of the activities and expected accomplishments identified in the previously adopted 2021 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.
2021-22 Program Year in Review
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) - Federal (for Administrative purposes only)
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.
Continuing over from the hectic and unpredictable previous (2020-21) program year, the 2021-22 year has proven almost as hectic on account of the catch-up work needed to recover from almost a full year of delays Housing staff and subrecipient organizations experienced in 2020-21 due to the pandemic. Most of the City’s 2021-22 subrecipients were organizations who also received 2020-21 funding; therefore, due to those delays, overlap of program year projects occurred and created minor hiccups that required some contract amendments and extensions to keep funds and projects moving. Accordingly, although the year-to-year cycle of projects is almost back to normal, some 2021 projects were not able to completely expend all funding by June 30, 2022. Those programs are expected to complete before mid-year Two contracts remain to be executed, so that those reimbursements can occur retroactively. The Housing Division appreciates the understanding and teamwork of all these subrecipients in getting projects implemented and funds spent throughout the community.
There have been some notable accomplishments from the 2021-2022 year, which include:
1. The Housing Division invested over $1,681,408 towards new CDBG and HOME program activities and received $916,259 in program income that will be re-invested back into affordable housing and infrastructure projects during the next program year (2022-2023).
2. The Housing Division was able to fund a combined 9 new CDBG, HOME, and CDBG-CV projects and public services programs and supplement 3 existing CDBG-CV programs with additional CARES Act funds by the end of the program year, with 2 projects implemented by the awarded organizations on good faith and are currently awaiting contracts and/or expense reimbursements.
3. Through HOME administrative funding, Project Sentinel, Inc. provided fair housing services to a total of 220 people through 8 case investigations that benefitted 18 residents, provision of information and referrals that helped another 102 residents, and 100 residents were provided information regarding rental rights and responsibilities. Additionally, over 5,000 brochures providing fair housing information were distributed through community fairs, schools, and other organizations.
4. By June 2021, with a total of $78,438 from both 2020 and 2021 CDBG, Harvest Time was able to provide vital food distribution services to 610 low- to moderate-income City households, for a total of 1,956 people, and installation of replacement cold storage appliances is pending final building permit approval.
5. By year’s end, Sierra Saving Grace Homeless Project, and the Salvation Army’s Coronavirus Community Development Block Grant (CDBG-CV) rental, mortgage, and gas/electric utility assistance programs together assisted 83 households (a total of 234 people) to keep their housing and essential gas and electric utilities after experiencing Coronavirus-related income loss.
6. Sierra Saving Grace was able to assist another 29 households (72 people) with rent, mortgage, and utility assistance through $20,000 of regular 2021 and the remainder of its 2020 CDBG program funds.
7. With $200,0000 of CDBG-CV funds, the Merced County Food Bank was able to hire additional staff and purchase extra food to match the quadrupled increase in community food supplement needs caused by the Pandemic by providing food distributions to approximately 72,137 Merced City residents.
8. The 119-unit Childs Court Apartments/Childs and B Street Affordable Housing Project was completing construction at the end of the program year, and on August 18, 2022, received final Certificate of Occupancy on all buildings. In April 2022, the complex’s website went live and began accepting waiting list applications from potential tenants. Street, sidewalk, bike lane, and transit-related improvements on B Street and the surrounding neighborhood are completing construction. The project used funding sources from CDBG, HOME, State AHSC 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.
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 August 4, 2022, in both the Merced Sun-Star and the Merced County Times and posted the 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 August 9, 2022, 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 Monday, August 22 to Monday, September 5, 2022, 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 day, through September 6th, to accommodate the Labor Day holiday.
The Draft 2021 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.
One member of the public attended the August 9th public meeting, and Housing Staff did not receive any written comments or other CAPER-related inquiries during the extended 16-day comment period.
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 and 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 2021 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 second 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 first draft 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 2021-2022 CAPER.
ATTACHMENTS
1. Draft 2021-2022 CAPER
2. Presentation
3. Resolution