There is no General Fund impact. All funds are provided to Contra Costa County (County) on a formula basis through the U.S. Department of Housing and Urban Development (HUD).
Catalog of Federal Domestic Assistance Numbers:
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Community Development Block Grant (CDBG) Program - 14.218
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HOME Investment Partnerships Act (HOME) Program - 14.239
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Emergency Solutions Grant (ESG) Program - 14.231
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Housing Opportunities for Persons with AIDS (HOPWA) Program - 14.241
The CDBG Program will be entering its forty-fifth year. The primary objective of the CDBG program is the development of viable urban communities through the provision of decent housing, a suitable living environment, and economic opportunity. CDBG funds are allocated annually to eligible entitlement jurisdictions by HUD on a formula basis. The County’s DCD administers CDBG funds on behalf of the "Urban County". The Urban County includes the unincorporated County and all cities except Antioch, Concord, Pittsburg, and Walnut Creek. Those cities administer independent CDBG programs.
The purpose of the HOME Program is to increase and maintain the supply of affordable housing for lower income households. Funds are allocated to eligible participating jurisdictions and HOME consortia on a formula basis by HUD. 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, the County is responsible for administration and management of the HOME program for the Consortium.
The County, as an entitlement jurisdiction, receives ESG funds annually from HUD on a formula basis for use in funding renovations of buildings for use as emergency shelters for the homeless; provision of essential services for the homeless; emergency shelter operations and related services; and homelessness prevention and rapid re-housing activities. The County administers ESG funds on behalf of the Urban County.
The County also receives HOPWA funds, as a sub-grantee of the City of Oakland, to provide localities with resources and incentives to devise long term strategies for meeting the housing needs of persons with acquired immunodeficiency syndrome (AIDS) or related diseases and their families. HOPWA funds may be used for a wide range of housing, social services, program planning, and development costs. These include, but are not limited to, the acquisition, rehabilitation, or new construction of housing units; costs for facility operations; rental assistance; and short-term payments to prevent homelessness. The County administers HOPWA funds on behalf of the Consortium. Staff is recommending $844,665 in FY 2019/20 HOPWA funds to Community Housing Development Corporation of North Richmond and Eden Housing, Inc. (CHDC/Eden) and $210,000 in FY 2019/20 HOPWA funds to Resources for Community Development (RCD). The HOPWA funds will be specifically for CHDC's/Eden's Legacy Court project and for RCD's 1313 Galindo project. As proposed, CHDC/Eden is being recommended $200,000 for construction/construction close of their respective project, and $10,000 will be for specific project delivery costs incurred by the County. RCD is being recommended $834,665 for construction/construction close of their respective project, and $10,000 will be for specific project delivery costs incurred by the County. These recommendations are being considered by the Board on the same date as a separate item.
FY 2019/20 Action Plan
The Action Plan (Attachment D) describes the projects and programs the County will undertake during the program year to address priority needs identified in the Contra Costa County FY 2015-2020 Consolidated Plan, and identifies the use of grant funds and program income received during the program year by activity, and proposed accomplishments. In order to begin the program year on time, the County's FY2019/20 must be approved by the Board of Supervisors and submitted to HUD by June 11, 2019.
On November 4, 2014, the Board of Supervisors (Board) amended its funding guidelines, originally adopted in 1993 and revised in 2006, for 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. Funding recommendations are made by the following Committees:
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Family and Human Services Committee – CDBG Public Service (PS) and ESG categories
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Finance Committee – CDBG Economic Development (ED) and Infrastructure/Public Facilities (IPF) categories
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Affordable Housing Finance Committee – HOME and CDBG-Housing category
Family and Human Services (FHS) Committee: The FHS Committee met on May 13, 2019, to consider staff recommendations for FY 2019/20 PS and ESG projects. The meeting was noticed and project applicants were encouraged to attend and provide input into the allocation process. Approximately 4 persons representing various agencies attended the meeting. After discussion, the FHS Committee approved staff recommendations as shown in Attachment A-1 and A-2.
Finance Committee: The recommendations for the allocation of CDBG funds under the ED category and IPF category are typically made and forwarded to the Board by the Finance Committee. Unfortunately, the Finance Committee was unable to meet in the months of April or May for CDBG staff to present recommendations. However, staff is recommending that all applications received in the ED and IPF categories get awarded funding at their requested amounts, as shown in Attachment B-1 and B-2.
Affordable Housing Finance Committee (AHFC): The AHFC is a Board-appointed advisory committee that develops funding recommendations for the Board concerning the allocation of federal funds for affordable housing development. The AHFC met on April 23, 2019, to consider staff funding recommendations for CDBG-housing and HOME projects. Members of the public, including project sponsors, were invited to attend and provide input into the allocation process. Following discussion and comment on each project, the AHFC developed recommendations for the allocation of CDBG and HOME funds for affordable housing programs and projects (Attachment C).
Analysis of Impediments/Assessment to Fair Housing Choice
Recipients of funds from HUD have a duty to affirmatively further fair housing, by taking proactive steps to overcome housing discrimination and segregation. To help meet this requirement, Contra Costa County worked with the Cities of Antioch, Concord, Pittsburg, and Walnut Creek, as well as with the three Public Housing Authorities (PHAs) in Contra Costa County, to conduct an Analysis of Impediments/Assessment to Fair Housing Choice (AI). The preparation and completion of an AI is a recurring obligation of the County, set forth by HUD, and must be completed every five years.
The AI is a report that identifies fair housing issues in Contra Costa and the region, discusses contributing factors to issues, and outlines goals and strategies to address issues. The fair housing analysis in the AI focuses on patterns of integration and segregation, racially and ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs. Other components of the AI examine publicly supported housing, disability and access, fair housing enforcement, and demographics. The AI process involved an analysis of data provided by HUD, local data from the jurisdictions and PHAs, and feedback gathered from the community through surveys and community meetings. The recommendations in the AI are to inform future policies in Contra Costa County that will promote fair housing choice and inclusive communities.
The completed Draft AI (Attachment E) was noticed in the newspaper and the document was posted online for public review and comment 30 days prior to public hearing. No written public comments were received as of the preparation of this report.
Delay in approving the recommendations by staff and the Committees, the Action Plan, and/or the AI, may result in the County not submitting its application on time and jeopardize the County receiving its FY 2019/20 CDBG, HOME, and ESG funds.
Most of the projects and programs funded with CDBG, HOME, and ESG funds address at least one of the five community outcomes established in the Children's Report Card.