Report Prepared by: Laura Ivancich, Housing Program Specialist and Leah Brown, Management Analyst
Title
SUBJECT: Introduction of the Public Participation Process for U.S. Department of Housing and Urban Development (HUD) Grant Programs and Annual Plan Process
REPORT IN BRIEF
Staff to provide a report on the public participation opportunities, as well as the HUD grant programs received by the City of Merced and the HUD Annual Plan Process.
RECOMMENDATION
Information Only.
Body
DISCUSSION
The purpose of this report is to identify key dates and opportunities for public participation. The HUD Annual Action Plan is a yearly report describing the projects that the City intends to implement using HUD grant funds. The process in developing the Plan begins with community input to determine the needs and priorities related to housing, homelessness, public services, and infrastructure. Following a detailed and months long community outreach campaign, the first Public Hearing will be March 2023, followed by a 30-day public review and comment period, then a Final Public Hearing in May 2023 for City Council approval prior to submission of the report to HUD.
This year we are also seeking input on a special one-time funding allocation that was given to the City of Merced in response to the long-term impacts from the Coronavirus Pandemic. These funds are called the Home Investment Partnership Program - American Rescue Plan (HOME-ARP). The City allocation is $1,988,778. These funds have specific qualifying populations:
• Homeless
• At Risk of Homelessness
• Fleeing/Attempting to flee Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking
• Other Populations (assistance would prevent family’s homelessness, serve those with greatest risk of housing instability)
• Veterans and families that include a veteran family member that meet the criteria for one of the Qualifying Populations described above
Eligible activities for the qualifying populations include affordable rental housing, tenant based rental assistance, supportive services, acquisition or construction of non-congregate shelters, and nonprofit operating and capacity building assistance.
HOME-ARP also requires an allocation plan that will be submitted as a substantial amendment to the 2021 HUD Annual Action Plan. The process in developing the HOME-ARP Plan also includes community and consultant input, a preliminary Public Hearing, a 15-day comment period, followed by a final Public Hearing in March 2023 with City Council approval needed prior to submission of the plan to HUD.
To determine the best use of these significant Federal funds, Community Needs Surveys are now available, along with outreach via public meetings. The Community Needs Surveys are available on-line and in three languages. Links to the surveys can be found at www.cityofmerced.org/housing and hard copies are available by request at the Housing Division counter. Links and QR codes will be published in three consecutive City Utility Bill newsletters. The HUD Annual Action Plan survey will be open until February 28, 2023. The HOME-ARP survey has a shorter timeline and closes on January 31, 2023.
Community input meetings are scheduled in December as follows:
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Date: |
Time: |
Location (all meetings): |
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Monday, December 12, 2022 |
6:00 p.m. |
Sam Pipes Room, First Floor, |
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Tuesday, December 13, 2022 |
6:00 p.m. |
Merced Civic Center/City Hall, |
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Friday, December 16, 2022 |
3:00 p.m. |
678 W 18th Street, Merced, CA |
The meetings will be advertised in multiple languages (English, Spanish, and Hmong) in both local newspapers. Spanish and Hmong translation can be made available at the meetings by calling the City of Merced Housing Division at (209) 385-6863 or emailing housing@cityofmerced.org at least 48 hours/2 days prior to the meeting date. The meetings may also be presented in a hybrid in person/virtual format.
CDBG and HOME
HUD allocates two major federal grants to the City of Merced annually to fund projects aimed at benefitting low to moderate income (LMI) residents. Last year the City received $1,099,911 of Community Development Block Grant (CDBG) funding. HUD requires that 70% of CDBG funds be used for LMI; however, the City aims to use all 100% for LMI. Up to 15% of the funds can be used for public services such as, short-term rental, mortgage, utility assistance, youth services, and education. Other uses include acquisition and rehabilitation of affordable housing, economic development, parks development, infrastructure improvements, and vacant property cleanup (acquisition, disposition, clearance and cleanup of contamination).
The Home Investment Partnership Program (HOME) is the other primary federal grant allocated to the City by HUD. All of the HOME funds are required to be used for LMI residents. Last year the City received $603,192 in HOME funding. Fifteen percent (15%) of the funds are required to go to a Community Housing Development Organization (CHDO) whose mission is to increase home ownership and affordable housing for low and very low-income people. The Central Valley Coalition for Affordable Housing is the only HUD certified CHDO available. Eligible uses for HOME funds include new construction of rental housing, fair housing consultant services, tenant based rental assistance, housing rehabilitation, homebuyer assistance, and site acquisition that includes improvements, demolition, and relocation.
CDBG has previously funded emergency short term rental, mortgage, and utility assistance through a partnership with Sierra Saving Grace. Other public services include food distribution for homeless and LMI residents with the help of Harvest Time. Lifeline CDC has a funded program to provide life skills, financial literacy, afterschool activities, and training in the Loughborough Community. Affordable housing project partners include Sierra Saving Grace, Merced Rescue Mission, and Habitat for Humanity Stanislaus.
As a partner with Merced County Human Services Agency, Continuum of Care (CoC), the City shares the administrative portion of the CDBG grant for certain services. The services provided by the CoC include the annual homeless count, reporting, grant monitoring, and funding applications for homeless services. Additionally, Project Sentinel assisted with fair housing services and outreach to City of Merced residents.
ATTACHMENTS
1. Presentation