REPORT TO THE CITY COUNCIL January 28, 2021 FROM: JENNIFER CLARK, Director Planning and Development Department THROUGH: THOMAS MORGAN, Housing Manager Housing and Community Development Division KAREN JENKS, Administrative Manager Housing and Community Development Division BY: EDWARD CHINEVERE, Senior Management Analyst Housing and Community Development Division SUBJECT ..Title HEARING to obtain public comments regarding community needs for consideration in the development of the 2021-2022 Annual Action Plan for federal funding through the U.S. Department of Housing and Urban Development's Office of Community Planning and Development (HUD CPD). ..Body RECOMMENDATION In accordance with federal regulations, staff recommends the City Council conduct a community needs public hearing to request public input on the needs of the community with regard to housing and community development activities eligible for funding through the U.S. Department of Housing and Urban Development's Office of Community Planning and Development (HUD CPD) programs. EXECUTIVE SUMMARY The community needs public hearing is an element of the City's Annual Action Plan process required in order for the City to receive HUD CPD entitlement grant funding. The four HUD CPD programs are the Community Development Block Grant (CDBG); HOME Investment Partnerships (HOME); Emergency Solutions Grant (ESG); and Housing Opportunities for Persons with AIDS/HIV (HOPWA). Staff anticipates that the City will receive approximately $11.6 million in Program Year 2021-2022. Funding from these programs must be used to primarily benefit low- and moderate-income persons through eligible activities, must be consistent with the City's 2020-2024 Consolidated Plan, and must be informed by public participation. The 2021-2022 Annual Action Plan will cover the period from July 1, 2021, through June 30, 2022, and will be the second year of the current Consolidated Plan. Following the community needs public hearing, the City will prepare a consolidated Notice of Funding Availability (NOFA) to request applications from units of local government and eligible community-based organizations for activities to achieve the goals of the Consolidated Plan consistent with the community needs identified during the consultation and public participation phase of the planning process. The City will provide technical assistance to organizations during the application process in order to help them understand and address the federal regulations and requirements for funding. City staff will then analyze applications and score them according to the criteria published with the NOFA. The results will be reviewed by an ad hoc committee of the City Council, after which the City will prepare a draft Annual Action Plan detailing the proposed activities for 2021-2022 HUD CPD funding. After a 30-day public review period, the draft Annual Action plan will be brought to City Council to authorize submission to HUD in order to meet the City's submission deadline of May 15, 2021. BACKGROUND 2020-2024 Consolidated Plan Priorities The Consolidated Plan was adopted by the City Council on May 21, 2020 and identified the following priorities for funding during the plan period. In accordance with federal regulations, the 2021-2022 Annual Action Plan must be consistent with these priorities: * Provide assistance for the homeless and those at risk of becoming homeless through safe low-barrier shelter options, housing first collaborations, and associated supportive services. * Improve access to affordable housing for low-income and special needs households by partnering with interested developers to increase development of low-income and affordable housing in high opportunity areas, and by promoting the preservation and rehabilitation of existing affordable housing units. * Promote quality of life and neighborhood revitalization through improvements to current public infrastructure and facilities, and by closing gaps in areas with aging, lower quality, or nonexistent public infrastructure and facilities. * Provide services to low-income and special needs households that develop human capital and improve quality of life. * Provide services to residents and housing providers to advance fair housing. * Plan and administer funding for community development, housing, and homelessness activities with improved transparency, increased community involvement, and full compliance with federal regulations. Anticipated Funding As of the writing of this report, HUD has not announced 2021-2022 funding allocations; however, the City anticipates receiving approximately the following allocations: * $7,112,600 - Community Development Block Grant (CDBG) * $3,255,100 - HOME Investment Partnerships (HOME) * $636,100 - Housing Opportunities for Persons with AIDS/HIV (HOPWA) * $610,000 - Emergency Solutions Grant (ESG) Consultation and Public Participation In addition to this required public hearing, the City conducted two virtual workshops at different times of the day on January 21st and January 22nd, in order to collect input from as many residents as possible. All workshops and hearings include Spanish and Hmong interpretation. In order to reach as many low- and moderate-income residents as possible while observing practices to reduce the spread of the Coronavirus, the City will continue to use social media, email, radio, and newspaper to promote the public participation and comment opportunities and is also actively encouraging interested parties and community leaders and organizations to share the participation opportunity. The City also distributed a questionnaire to local units of government and community-based organizations who have participated in the prior public consultation efforts for HUD CPD plans to request more detailed information relating to how community needs may have changed over the past year. Schedule of Key Activities: * December 23, 2020 - Public Notice published in the Fresno Bee and to the website of the City Clerk * December 30, 2020 - Spanish-language notice published in Vida en el Valle * Week Ending December 31, 2020 - Meeting invitation flyer and public notice distributed to housing and community development division mailing list (approximately 500 persons - email HCDD@fresno.gov to join); posted to City of Fresno Facebook and Twitter accounts * January 21, 2021 at 5:30 P.M. - Virtual Community Needs Workshop #1 * January 22, 2021 at 10:30 A.M. - Virtual Community Needs Workshop #2 * January 28, 2021 at 10:05 A.M. or thereafter - City Council Community Needs Public Hearing * February 5, 2021 - Consolidated Notice of Funding Availability (NOFA) Released * Week ending February 19, 2021 - NOFA Technical Assistance Webinars * March 5, 2021 - Applications for Funding Due * March 19, 2021 - April 20, 2021 - Draft Annual Action Plan public review period * April 22, 2021 - City Council Annual Action Plan Public Hearing and Consideration * May 15, 2021 - 2021-2022 Annual Action Plan due to HUD * May 17, 2021 - Affordable Housing and Substantial Rehabilitation NOFA released * July 5, 2021 - Affordable Housing and Substantial Rehabilitation applications due ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378. These plans, strategies and studies are an exempt activity under HUD NEPA Requirements (24 CFR 58.34 (1)). LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT Completion of the 2021-2022 Annual Action Plan process will qualify the City to receive an estimated $11,600,000 of new entitlement funding. Attachment: Summary Annual Action Plan Overview