REPORT TO THE CITY COUNCIL September 17, 2020 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 RESOLUTION - Approving allocations and awarding subrecipient agreements in accordance with the 2020-2021 Annual Action Plan to include Community Development Block Grant (CDBG) funds of: $1,028,001 for Housing Rehabilitation, $161,000 for Non-Profit Public Services, and $35,000 for Micro-Enterprise Assistance; HOME Investment Partnerships funds of $711,789 for Tenant-Based Rental Assistance; Emergency Solutions Grant (ESG) funds of $717,230 for homeless and homelessness prevention; and Housing Opportunities for Persons with HIV/AIDS (HOPWA) funds of $617,040; and authorizing the City Manager to sign all implementing documents required by the U.S. Department of Housing and Urban Development (HUD) as approved to form by the City Attorney ..Body RECOMMENDATIONS Staff recommends the City Council approve the allocation of HUD funds for recommended activities received in application to the 2020-2021 Consolidated Notice of Funding Availability (NOFA) and authorize the City Manager to sign all subrecipient agreements as approved to form by the City Attorney. EXECUTIVE SUMMARY City Council adopted the 2020-2021 Annual Action Plan on May 21, 2020, approving the allocation of funds to Projects outlined in the Plan. City staff released a NOFA on May 22, 2020, to request applications for the following approved Projects: Housing Rehabilitation, Tenant-Based Rental Assistance, Non-Profit Public Services, Emergency Solutions Grant, Housing Opportunities for Persons with HIV/AIDS, and Micro-Enterprise Assistance. Staff reviewed the applications for eligibility and scored the applications according to the criteria distributed with the NOFA, after which an ad hoc committee of the City Council prepared a recommendation of applications and corresponding funding levels. BACKGROUND In order to qualify for and receive federal grant funding through HUD, the City is required to prepare a Consolidated Plan every five years detailing the housing and community development needs of its low- to moderate-income persons and five-year strategies to address the highest priority needs. The City must also prepare an Annual Action Plan for each year of the Consolidated Plan detailing the projects to be funded through CDBG, HOME, ESG, and HOPWA programs. The 2020-2024 Consolidated Plan and 2020-2021 Annual Action Plan were adopted by City Council on May 21, 2020. Following the adoption of the Plans, staff released a Consolidated Notice of Funding Availability (NOFA) requesting applications for six of the projects outlined in the Plan. Staff published the NOFA to the website of the Housing and Community Development Division, and communicated the NOFA by email to a list of 500+ stakeholders who have expressed interest in receiving updates regarding planning and funding activities. Staff also presented four virtual webinars, maintained an FAQ, and offered technical assistance to prospective applicants. 2020-2021 Consolidated NOFA Projects and Funding Project Funding Available Housing Rehabilitation 1,028,001 (CDBG) Tenant-Based Rental Assistance 711,789 (HOME) Non-Profit Public Services 161,000 (CDBG) Emergency Solutions Grant (ESG) 717,230 (ESG) Housing Opportunities for Persons with HIV/AIDS 617,040 (HOPWA) Micro-Enterprise Assistance 35,000 (CDBG) Any reallocation of funding for these approved projects, activities and program categories in excess of 25%+/- will require a substantial amendment to the 2020-2021 Annual Action Plan which will require a new notice period, comment period, Council adoption, and HUD submission and approval. Additionally, changes to the following sub-allocation of funding for ESG require consultation with the Fresno Madera Continuum of Care (FMCoC): 2020-2021 ESG Sub-Allocations Supported by FMCoC ESG Program Component 2020-2021 Allocations Street Outreach and Emergency Shelter 259,752 Homelessness Prevention 38,770 Rapid Rehousing 418,708 ESG City Administration 45,751 The City received 21 applications, out of which 16 qualified for the funded projects. Three applications were for facility improvements, an activity type that does not qualify for the approved projects, and two applications were for activities outside of the City of Fresno. Staff reviewed the applications according to the evaluation criteria published with the NOFA and presented the applications to an ad hoc committee of the City Council. The ad hoc committee's funding recommendations are attached to the resolution as Exhibit A. Upon adoption of the resolution, the City will use the subrecipient agreements as approved to form by the City Attorney to enter into agreements with subrecipients for activities approved for funding by this resolution. ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378. Activities approved for funding are contingent on the successful completion of a HUD NEPA review and finding of no significant impact. LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT Activities approved through this resolution will have no general fund impact and are appropriated HUD activities in the FY21 budget. Attachments: Resolution - Revised 2020-2021 City Council Committee Consolidated NOFA Funding Recommendations - Revised Summary - Revised Subrecipient Agreements 2020-2021 Consolidated NOFA Funding Requests - Revised