REPORT TO THE CITY COUNCIL December 10, 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 $50,000 for fair housing; 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 Fair Housing 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 August 14, 2020, to request applications for the approved Fair Housing Project. 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 reviewed 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. As part of the Consolidated Plan process, the City must also commit to affirmatively furthering fair housing by completing an Analysis of Impediments to Fair Housing Choice at least every five years. The 2020-2024 Consolidated Plan, 2020 Analysis of Impediments to Fair Housing Choice, and 2020-2021 Annual Action Plan were adopted by City Council on May 21, 2020. Following the adoption of the plans, staff prepared a Notice of Funding Availability (NOFA) requesting applications for the Fair Housing project outlined in the Annual Action Plan. The NOFA requested applications for recommended activities specifically identified in the 2020 Analysis of Impediments to Fair Housing Choice, which were grouped into three main categories: 1. Fair Housing Complaint and Referral Services 2. Public Fair Housing Education and Outreach; and 3. Fair Housing Education and Outreach for Housing Industry Professionals 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 a virtual webinar and offered technical assistance to prospective applicants. The Fair Housing project was approved for $50,000 of CDBG funds through the 2020-2021 Annual Action Plan. Any reallocation of funding for this approved project 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. The City received three applications, out of which two qualified for the funded projects. 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 funding recommendation is attached to the resolution as Exhibit A. Upon adoption of the resolution, the City will use the CDBG subrecipient agreement 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 2020-2021 Fair Housing Funding Recommendations Summary 2020-2021 Fair Housing Funding Requests CDBG Subrecipient Agreement