There is no General Fund impact. All funds are provided to Contra Costa County on a formula basis through the U.S. Department of Housing and Urban Development (HUD).
Catalog of Federal Domestic Assistance Numbers:
- CDBG Program - 14.218
- HOME Program - 14.239
- HOME-ARP program - 14.239
- ESG Program - 14.231.
The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, primarily for low-income persons and households (persons/households earning no more than 80 percent of the Area Median Income). CDBG funds are allocated on an annual formula basis to eligible entitlement jurisdictions, including Contra Costa County, by the U.S. Department of Housing and Urban Development (HUD). The County's Department of Conservation and Development (DCD) administers CDBG funds on behalf of the "Urban County." The Urban County includes the unincorporated County and all incorporated cities and towns except the cities of Antioch, Concord, Pittsburg, and Walnut Creek. Those specific cities administer independent CDBG programs. The County's CDBG Program will be entering its forty-ninth year.
The HOME program aims to expand the supply of decent, safe, sanitary, and affordable housing for very low and low-income households. HUD allocates HOME funds to eligible participating jurisdictions and HOME consortia on a formula basis. The Contra Costa HOME Consortium (Consortium) consists of the Urban County and the cities of Antioch, Concord, Pittsburg, and Walnut Creek. As the Consortium representative, DCD is responsible for administrating and managing the HOME program for the Consortium.
Contra Costa County, as an entitlement jurisdiction, receives ESG program funds on an annual formula basis from HUD for use in funding renovation, rehabilitation, or conversion of buildings for use as emergency shelters for persons experiencing homelessness; provision of essential services for people without housing, emergency shelter operations and related services, and homelessness prevention and rapid-rehousing activities. DCD administers the ESG program funds on behalf of the Urban County.
The HOME-ARP program originated from The American Rescue Plan of 2021, which appropriated $5 billion to assist individuals or households who are experiencing homelessness, at risk of homelessness, and other vulnerable populations by providing rental housing, rental assistance, supportive services, and non-congregate shelter to reduce homelessness and increase housing stability. The funds were allocated by HUD on a formula basis to jurisdictions that qualified for funding through the HOME Program. HOME-ARP is a special one-time source funding program. The Board of Supervisors approved the County's HOME-ARP Allocation Plan on October 11, 2022, allowing HOME-ARP funds to acquire, develop, rehabilitate, or preserve affordable rental housing and/or permanent supportive rental housing units to serve Qualifying Populations.
HOME-ARP funds must primarily benefit individuals and households in the following Qualifying Populations:
- Experiencing homelessness (as defined in 24 CFR 91.5 "Homeless" (1), (2), or (3))
- At risk of homelessness (as defined in 24 CFR 91.5 "At Risk of Homelessness")
- Fleeing domestic violence, dating violence, sexual assault, stalking, or human trafficking (as defined in 24 CFR 5.2003)
- Other populations with a high risk of housing instability (including highly cost-burdened low-income households, households who have moved two or more times in the last 60 days, and households living in a hotel/motel
FY 2023/24 Annual Action Plan Process and Funding Recommendations
Contra Costa County, as an entitlement or participating jurisdiction, is entitled to receive CDBG, HOME, and ESG funds from HUD each year for housing and community development activities. To receive these annual awards of federal funds, the County must submit to HUD a strategic plan, called the Consolidated Plan, every five years. The Consolidated Plan identifies priorities of local needs and general objectives on how these needs will be addressed. As part of the Consolidated Plan process, the County must submit an Annual Action Plan for each year during the five-year Consolidated Plan period. An Annual Action Plan specifies and describes what actions and activities will be carried out during the program year to address priority needs identified in the County's current Consolidated Plan, and identifies the use and amount of CDBG, HOME, and ESG funds and program income anticipated to be received during the program year by activity and identifies proposed accomplishments by activity. The proposed FY 2023/24 CDBG, HOME, and ESG Action Plan is covering the fourth year of the County's five-year 2020-2025 Consolidated Plan period.
On November 4, 2014, the Board of Supervisors adopted funding guidelines for the use of CDBG funds as follows: Housing 45 percent; Public Services (PS) 17 percent; Economic Development (ED) 10 percent; Infrastructure/Public Facilities (IPF) 8 percent; and Program Administration 20 percent. The following sub-committees or advisory committees of the Board of Supervisors make funding recommendations:
- Family and Human Services Committee - CDBG PS category and ESG Program funds
- Finance Committee - CDBG ED and IPF categories
- Affordable Housing Finance Committee - CDBG Housing category, HOME, and HOME-ARP Program funds
The Family and Human Services (FHS) Committee met on March 23, 2023, to consider staff recommendations for FY 2023/24 CDBG PS and ESG programs and projects. The meeting was noticed, and project applicants were encouraged to attend and provide input into the allocation process. After discussion, the FHS Committee approved staff recommendations as shown in Attachments B-1 and B-2.
The Affordable Housing Finance Committee (AHFC), a Board-appointed advisory committee, held a noticed public meeting on April 21, 2023, to consider staff funding recommendations for FY 2023/24 CDBG Housing, HOME, and HOME-ARP applications. Project applicants were encouraged to attend and provide input into the allocation process. Following discussion and comment, the AHFC recommended funding allocations shown in Attachment D. The AHFC also made recommendations on allocations of County funds and Housing Opportunities For Persons with HIV/AIDS funds related to affordable housing projects and these are addressed in two separate Board Orders for May 9.
The Finance Committee met on May 1, 2023, to consider staff recommendations for the FY 2023/24 CDBG-ED programs and IPF projects. The meeting was noticed, and project applicants were encouraged to attend and provide input into the allocation process. After discussion, the Finance Committee approved staff recommendations as shown in Attachments C-1 and C-2.
CEQA: The Action Plan is exempt from CEQA review. However, individual projects may be subject to further determination and study, which the project's lead agency will undertake. Depending on the location of recommended projects, the County may be the responsible agency for some housing projects. CEQA determinations will be made and approved by the responsible agency for a respective housing project before entering into project agreements or other legal documents for each respective housing project.
National Environmental Policy Act (NEPA): All CDBG, HOME, HOME-ARP, and ESG projects/programs are subject to NEPA and review in accordance with HUD NEPA regulations (24 CFR Part 58). The NEPA review for each project will be completed prior to entering into project agreements or other legal documents for each respective project.
Negative action will prevent the Action Plan from being submitted to HUD by the May 17, 2023 deadline and jeopardize the County's receipt of the FY 2023/24 CDBG, HOME, HOME-ARP, and ESG funds.
The recommendation supports the following children's outcomes:
(1) Children Ready for and Succeeding in School;
(2) Children and Youth Healthy and Preparing for Productive Adulthood;
(3) Families that are Economically Self-Sufficient;
(4) Families that are Safe, Stable, and Nurturing; and
(5) Communities that are Safe and Provide a High Quality of Life for Children and Families.