DEPARTMENT: Department of Planning and Community Development
DEPARTMENT HEAD: Bridgett White, Interim Director
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
2nd Public Hearing for the FY 2017 Action Plan and Budget
SUMMARY:
The 2nd Public Hearing for the FY 2017 Action Plan and Budget for the four federal grant programs funded by the U.S. Department of Housing and Urban Development (HUD) which include the Community Development Block Grant (CDBG), HOME Investment Partnerships Program, HEARTH Emergency Solutions Grant (HESG), and Housing Opportunities for Persons with AIDS (HOPWA) Program and for a Substantial Amendment to the FY 2013 - FY 2015 Annual Action Plans and Budgets to allow for city-wide application of the Owner Occupied Rehabilitation and Homebuyer Incentive Programs.
BACKGROUND INFORMATION:
The City of San Antonio is commencing the development of the FY 2017 Action Plan and Budget, which is the second year plan under the FY 2016-2020 Consolidated Plan. The City anticipates receiving approximately $23M in federal entitlements awarded through the U.S. Department of Housing and Urban Development (HUD). These grants include the Community Development Block Grant (CDBG), HOME Investment Partnerships Program, HEARTH Emergency Solutions Grant (HESG), and Housing Opportunities for Persons with AIDS (HOPWA) Program. These funds are designed to meet the needs of persons who are of low and moderate income and for preserving and developing low-income communities.
Consolidated Plan
The City of San Antonio receives four (4) federal entitlement grants awarded through the Department of Housing and Urban Development (HUD). These four grants include CDBG, HOME, HESG and HOPWA. Under the FY 2016-2020 Consolidated Plan, the City anticipates $89.9 million in federal resources to be available through the four formula grants.
In order to determine the most pressing needs and develop effective, place-based market-driven strategies to meet these needs, HUD required the development of a FY 2016-2020 Consolidated Plan. In developing the Consolidated Plan, the City gathered information through a number of methods, including a facilitated engagement session with 42 local stakeholders, four public meetings, a community survey (over 1,650 responses received), and a review of available census and HUD data. This process formed the basis of the strategic plan element of the Consolidated Plan.
Annually, the City coordinates an Action Plan and Budget development process to identify and implement community development and affordable housing activities to advance the goals of the Consolidated Plan. The FY 2017 Action Plan and Budget is the second plan year of the Consolidated Plan.
ISSUE:
FY 2016-2020 Consolidated Plan Priorities and Goals
The City established an interdepartmental Steering Committee comprised of representatives from various City departments to assist in reviewing community needs, identifying other City resources, and setting initial funding priorities based on results of the community engagement. The priorities of the Strategic Plan are as follows:
Priority 1: Provide Decent Safe Affordable Housing
The City shall utilize HUD funds to address a host of affordable housing issues. The goals are:
A. Rehabilitate existing housing stock to preserve neighborhoods by addressing aging, low performing, and substandard housing
B. Build new affordable single family housing to re-establish strong communities
C. Provide homebuyer assistance to make homes affordable and sustainable
D. Develop new affordable rental housing to expand the amount of available affordable rental housing
E. Further fair housing opportunities
Priority 2: Provide Neighborhood Revitalization Efforts
Neighborhood revitalization at its fundamental core transforms lower income neighborhoods into sustainable communities with mixed-income housing, safe streets, and economic opportunity. The goals of this priority are:
A. Integrate housing, land use, transit, and safety to create mixed‐use/mixed‐income neighborhoods
B. Improve neighborhood connectivity between jobs, housing, and commercial areas
C. Improve public infrastructure including streets, streetscapes, sidewalks, drainage, and utilities
D. Eliminate environmental hazards and conditions of blight
Priority 3: Provide for Special Needs Populations
The City will utilize HOPWA funds to provide rental assistance, counseling, healthcare, life skills, short-term housing, supportive services and transportation services to clients. The City will also provide case management, financial assistance and support services. The goal is:
A. Provide housing and services for persons with HIV/AIDS
Priority 4: Provide Housing and Supportive Services for Homeless Population
Emergency shelter funds are used to provide essential services and operations in emergency shelters. The services provided will improve housing stability, reduce barriers to finding safe and affordable housing, and positively impact client’s ability to remain in stable housing. The goals are:
A. Provide services & housing for the homeless
B. Provide services to prevent at-risk persons from becoming homeless
Priority 5: Provide Economic Development
Financial literacy for low-income families is about education with respect to reducing overall household cost in relation to household income. For basic needs, the impact of financial decisions made today directly impact the future ability to manage debt and save money. The goal is:
A. Provide financial literacy training
FY 2017 Action Plan and Budget
In the FY 2017 Action Plan and Budget, the City has a total of $23,083,328 in available funds for the period of October 1, 2016 to September 30, 2017. The following table provides a summary of the proposed FY 2017 budget across the four grant programs. The detailed budget schedules can be found in Attachment A. On June 22, 2016 the Housing Committee supported the FY 2017 Action Plan and Budget funding strategy as follows:
|
Formula Grant |
FY 2017 Actual* |
|
Community Development Block Grant |
$13,247,418 |
|
HOME Investment Partnerships Program |
7,544,357 |
|
HEARTH Emergency Solutions Grant |
1,047,124 |
|
Housing Opportunities for Persons w/ AIDS |
1,244,429 |
|
Total |
$23,083,328 |
*Includes Entitlement, Reprogramming Funds, and Estimated Program Income
The approach for developing the proposed FY 2017 Action Plan and Budget involved convening workgroups with City subject matter experts to identify the proposed projects. Furthermore, staff proposes administrative improvements to ensure the delivery function of the proposed FY 2017 programs. The administrative budget across the four grants is $3,183,558 (14%) and provides for efficient grant administration while ensuring resources remain available to manage the performance of community development programs.
Community Development Block Grant
Housing Delivery (Citywide) $547,800
CDBG funds will be utilized to support the delivery of the City's Green and Healthy Homes Initiative and to support other rehabilitation program efforts.
Fair Housing Activities (Citywide) $192,784
The City’s Fair Housing Program will continue to advocate for and promote equal treatment of all residents of the community under the Federal Fair Housing Act. The City's program is part of the Family Assistance Division of the Department of Human Services and will promote activities on asset retention by addressing unique problems of predatory lending practices by unscrupulous lenders. The program will provide information and education, especially to the disabled and elderly community, through outreach presentations and classes. The program will also continue to assist in natural disaster situations by providing housing placement referrals for displaced families in an effort to avoid housing discrimination. On an individual level, Fair Housing staff will provide predatory lending counseling. An estimated 90% of the services provided by the program will benefit low to moderate income citizens in San Antonio neighborhoods with the least access or recourse to professional housing counseling services.
Green and Healthy Homes Grant Match (Citywide) $510,000
CDBG funds will be used as a match for a new round of Lead Hazard Reduction Demonstration (LHRD) grant funds to assist low to moderate income families address health and environmental safety issues across San Antonio.
Minor Repair Projects (Citywide) $300,000
CDBG funds will be used to assist low to moderate income families with minor home repairs that are frequently required in conjunction with lead and other environmental abatement efforts that are not eligible through the Lead Hazard Reduction Demonstration grant.
Façade Improvement Program (REnewSA Target Areas) $269,829
CDBG funds will support facade improvement initiatives seeking to reverse the deterioration of commercial structures in REnewSA target areas (D1, D2, D3, D4, D5, D6, & D7) and stimulate new private investment and economic growth. This program will provide funding for exterior improvements to commercial buildings in the REnewSA areas.
Code Enforcement Activities (REnewSA Target Areas) $187,749
CDBG funds will be used to support three (3) Code Enforcement positions that provide proactive code enforcement in the REnewSA target areas (D1, D2, D3, D4, D5, D6, & D7). The City is allocating additional local resources in support of REnewSA efforts, including other code enforcement costs that are not CDBG eligible. This budget does not provide for the cost of correcting code violations.
EastPoint Neighborhood Infrastructure Improvements (D2) $1,700,000
CDBG funds will be utilized for public improvements to EastPoint (previously known as the Eastside Choice Neighborhood Transformation or Wheatley Choice Neighborhood). In 2013, the City pledged approximately $19.4 million in various resources over a five year period to leverage another $88.5 million in public and private funds including a $30 million HUD Choice Neighborhood Initiative grant, for this transformational project. Through FY 2016, the City and related entities (SAWS, CPS and Inner City TIRZ) have awarded $10.6 million to EastPoint or 54% of the pledge. The City and related entities are expecting to award an additional $6.4 million during FY 2017, bringing the City’s cumulative investment to $17 million or 87% of the multi-year pledge.
Red Berry Infrastructure Improvements (D2) $1,480,931
CDBG funds will be utilized for the construction of the streets and utilities in support of the Red Berry Redevelopment Project and the associated Salado Creek Improvements.
REnewSA Catalytic Investment (REnewSA Target Areas) $450,000
CDBG funds will be utilized for public improvements to promote connectivity between residents and commercial corridors, and neighborhood facilities in an effort to transform lower income REnewSA neighborhoods (D1, D2, D3, D4, D5, D6, & D7) into sustainable communities.
Summer Youth Program (D1, D2, D3, D4, D5, D6 & D7) $208,282
The COSA Parks and Recreation Summer Youth Recreation Program is an eight-week, structured, supervised program offered at 20 Community Centers located in D1, D2, D3, D4, D5, D6 & D7, which features recreation-themed activities, active games, sports and more. A weekly enrichment program will also instruct participants with advanced art projects and science experiments along with a fitness and wellness component. Participants are grouped according to age and staff conducts age-appropriate recreation activities. CDBG funds will be used for staff salaries and other administrative expenses.
Community Center Extended Hours (D1, D2, D3, D4, D5, D6 & D7) $64,140
CDBG funds will be used to support staff salaries at 20 community centers in D1, D2, D3, D4, D5, D6 & D7 during extended hours of operation from 5:30 p.m. to 9:00 p.m. Monday through Thursday and Saturday 10:00 a.m. - 4:00 p.m. during the summer months.
Financial Education Program (Citywide) $200,000
The City currently supports a financial counseling program that provides free basic financial literacy to area residents.
HUD 108 Loan Repayment (Citywide) $4,794,419
In FY 2006, the City of San Antonio received a $57 million HUD 108 Capital Improvement Loan for the benefit of low to moderate income persons. Each year approximately $4.8 million of the CDBG entitlement is set aside for debt service to the Section 108 Guaranteed loan which becomes due on August 1, 2025.
HOME Investment Partnerships Program
Single Family Rehabilitation & Reconstruction (Citywide) $1,500,000
In an effort to preserve our inner city neighborhoods, the City will utilize HOME funds to assist low to moderate income homeowners that are in need of rehabilitating or reconstructing homes. Funds available may assist with all aspects of rehabilitation and construction including weatherization, lead based paint abatement, and clearance activities. During a review of uncommitted HOME funds from FY 2013 to 2015, the City identified that the inability to commit funding in a timely manner was due to a restriction in the service area. In an effort to improve grant performance and program timeliness of the Single Family Rehabilitation & Reconstruction Program, the City proposes removing targeted service areas currently assigned to funding for FY 2013 to 2015 for this program.
Multi-family Rental Housing Set Aside (Citywide) $1,250,000
The City provides HOME funds as a set-aside to support multi-family rental development activities awarded through the State Tax Credit Program or have leveraged significant private investment. The program provides gap financing for both new construction and rehabilitation of affordable rental housing units for low income families.
EastPoint (Wheatley Courts) Rental Development (D2) $2,500,000
The City will provide HOME funds to support multi-family rental development activities for the third phase of the Wheatley Courts Affordable Rental Housing Project. This project will develop new affordable housing units for low income families.
CHDO Single Family New Construction (Citywide) $1,220,000
The HOME program requires the City to set aside funds for Community Housing Development Organizations (CHDOs) to develop affordable housing units.
Homebuyer Incentive Program (Citywide) $301,476
The City provides HOME funds for low-to-moderate income homebuyers seeking to purchase decent, safe affordable housing. Specifically, the program will provide down payment and closing cost assistance to ensure homes are both affordable and sustainable to the homebuyer. During a review of uncommitted HOME funds from FY 2013 to 2015, the City identified that the inability to commit funding in a timely manner was due to a restriction in the service area. In an effort to improve grant performance and program timeliness of the Homebuyer Incentive Program, the City proposes removing targeted service areas currently assigned to funding for FY 2013 to 2015 for this program.
CHDO Operating Expense Program (Citywide) $20,450
This is supplemental funding to FY 2016’s uncommitted CHDO Operating Expense funding. This program is designed to provide operating funds to Community Housing Development Organizations based on financial need and the expectation that the organization is utilizing or will utilize the City’s HOME CHDO development funding within 24 months of the award.
HEARTH Emergency Solutions Grant
Emergency Shelter $212,747
Emergency shelter funds are used to provide essential services and operations to local emergency shelters. The City will work with external partners to provide case management, financial assistance, and support services to the homeless population.
Rapid Re-housing $488,465
The City will work with external partners to provide assistance to the homeless population including rental assistance, transportation, case management services, and life skills classes to allow participants to achieve increased self-sufficiency and an improved ability to meet their basic needs.
Homeless Prevention $222,621
The City will work with external partners to provide financial assistance and services to prevent individuals and families from becoming homeless and help those who are experiencing homelessness to be quickly re-housed and stabilized. These funds are intended to target individuals and families who would be homeless but for this assistance.
Outreach $70,935
The City will provide street outreach and case management to homeless veterans, including arranging, coordinating, and monitoring the delivery of individualized services including planning a path to permanent housing stability.
Housing Opportunities for Persons with AIDS
Housing and Supportive Services $1,207,096
The City will provide tenant based rental assistance, transitional housing, and other housing assistance for persons with HIV/AIDS as well as funding nursing operations, transportation, case management, food and nutrition programs.
FISCAL IMPACT:
The City’s FY 2017 Action Plan and Budget will not have an impact on the General Fund Budget.
RECOMMENDATION:
Staff recommends approval of the FY 2017 Action Plan and Budget for the City’s four federal grant programs including the Community Development Block Grant (CDBG), HOME Investment Partnerships Program, Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) Grant. In addition, staff recommends removing targeted service areas currently assigned to funding for FY 2013 to 2015 for the Single Family Rehabilitation & Reconstruction Program and the Homebuyer Incentive Program.