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HomeMy WebLinkAbout4.02 Three-Year Cooperative Agreement with Alameda County for Participation in the Urban County Program for Community Development Block Grant and HOME Investment Partnership Fundsr DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL DATE: .Line 20, 2023 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager Agenda Item 4.2 SU B.ECT : Three -Year Cooperative Agreement with Alameda County for Participation in the Urban County Program for Community Development Block Grant and HOME Investment Partnership Funds Prepared by:• Jason Earl, Senior Management Analyst EXECUTIVE SUMMARY: The City Council will consider a three-year cooperative agreement with Alameda County for participation in the Urban County Program for Community Development Block Grant and HOME Investment Partnership funds. This agreement will allow the City's continued participation in the Urban County program beginning July 1, 2024, for Federal fiscal years 2024-2026. STAFF RECOMMENDATION: Adopt the Resolution Authorizing the Continued Participation of the City of Dublin in the Alameda County Urban County for Community Development Block Grant Funds and Authorizing Execution of the Cooperation Agreement Between the City and County of Alameda Regarding Participation in the Alameda County Urban County for Community Block Grant Funds. FINANCIAL IMPACT: The agreement would allow the City to continue receiving CDBG and/or HOME funds during the upcoming three-year cycle. Therefore, there would be no change to the financial impacts to the City. DESCRIPTION: The Community Development Block Grant (CDBG) program provides annual grants to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate -income persons. The City currently receives CDBG and HOME funds through the Urban County Program Page 1 of 2 20 administered by the Alameda County Department of Housing and Community Development (HCD). The Urban County Program is a way for cities with a population of less than 50,000 to receive CDBG funds (cities over 50,000 may also choose to receive their CDBG allocation through the Urban County Program). Dublin participates in the Urban County Program through a Cooperative Agreement with unincorporated Alameda County and the cities of Newark, Emeryville, Albany, and Piedmont. On May 2, 2023, the City Council received a report on the status of the City's current participation in the Urban County Program and options for future administration of the CDBG program (Attachment 3). The City Council directed Staff to inform HCD that the City would remain in the Urban County Program and to prepare a new three-year Cooperative Agreement with Alameda County. The new three-year Cooperation Agreement will enable the City to continue participating in the Urban County program beginning July 1, 2024, for Federal fiscal years 2024-2026. The City Council is currently being asked to adopt the resolution included as Attachment 1, authorizing the continued participation in the Urban County Program and authorizing the execution of the Cooperation Agreement with Alameda County included as Attachment 2. ENVIRONMENTAL REVIEW: This information report is not subject to the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378 as it does not meet CEQA's definition of a project and will not result in direct or indirect physical changes in the environment. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Authorizing the Continued Participation of the City of Dublin in the Alameda County Urban County for Community Development Block Grant Funds 2) Proposed Three -Year Cooperative Agreement 3) City Council Staff Report Dated May 2, 2023 Page 2 of 2 21 Attachment I RESOLUTION NO. XX — 23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AUTHORIZING THE CONTINUED PARTICIPATION OF THE CITY OF DUBLIN IN THE ALAMEDA COUNTY URBAN COUNTY FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND AUTHORIZING EXECUTION OF THE COOPERATION AGREEMENT BETWEEN THE CITY AND COUNTY OF ALAMEDA REGARDING PARTICIPATION IN THE ALAMEDA COUNTY URBAN COUNTY FOR COMMUNITY BLOCK GRANT FUNDS WHEREAS, the United States Congress has enacted the Housing and Community Development Act of 1974 and Federal regulations have been adopted pursuant thereto, hereinafter called the "Act"; and WHEREAS, Title I of the Act consolidates previously separate grant programs for open space, public facility loans, water and sewer grants, urban renewal, model cities, rehabilitation loans, and affordable housing into a program called the Community Development Block Grant ("CDBG") program; and WHEREAS, Title I makes available entitlement grants to cities whose 2020 Census population exceeds 50,000 persons; and to counties which qualify as an urban county; and WHEREAS, the term "urban county" means any county within a metropolitan area which: (1) is authorized under state law to undertake essential community development and housing assistance activities in its incorporated areas which are not units of general local government; and, (2) has a combined population of 200,000 or more in such unincorporated areas and in its included units of local government: (A) in which it has authority to undertake essential community development and housing assistance activities and which do not elect to have their population excluded; or, (B) with which it has entered into cooperation agreements to undertake or to assist in the undertaking of essential community development and housing assistance activities; and WHEREAS, the Department of Housing and Urban Development ("HUD") has made a determination that the County of Alameda has the essential powers to operate as an urban county; and WHEREAS, four cities (Albany, Emeryville, Newark and Piedmont) in Alameda County have a 2020 Census population of less than 50,000 and desire to participate in the Alameda County Urban County; and one city has a population over 50,000 (Dublin) and desires to participate in the Alameda County Urban County to continue in the Alameda County Urban County for federal fiscal years 2024, 2025 and 2026; and Reso. No. XX-23, Item X.X, Adopted 06/20/2023 Page 1 of 2 22 WHEREAS, the participating cities, combined with the unincorporated portions of the County of Alameda, form a combined 2020 Census population of 200,000 or more persons, thereby qualifying as an urban county, and becoming eligible for an entitlement of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds; and WHEREAS, the participating cities agree that by executing these cooperative agreements they may not apply for grants under the Small Cities or State CDBG Program from appropriations for fiscal years during the period in which it is participating in the Urban County's CDBG program; and WHEREAS, the COUNTY and CITY cannot withdraw from the cooperative agreement while the Program Year 2024-2026 Agreement remains in effect. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby resolve, declare, determine and order as follows: SECTION 1. The Dublin City Council hereby authorizes the continued participation of the City of Dublin in the Alameda County Urban County. SECTION 2. The Dublin City Council hereby authorizes the City Manager to execute a cooperation agreement with the Alameda County in order to continue the City's participation in the Urban County. SECTION 3. This resolution shall take effect immediately upon its adoption. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the amendments to the agreements, attached hereto as Exhibit A, and make any necessary, non - substantive changes to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 20th day of June 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-23, Item X.X, Adopted 06/20/2023 Page 2 of 2 23 Attachment 2 AGREEMENT This Agreement is made and entered into this 1st day of July, 2023 by and between the CITY OF DUBLIN, hereinafter called "CITY" and the COUNTY OF ALAMEDA, hereinafter called "COUNTY", regarding their cooperation with respect to Community Development Block Grant funding. WHEREAS, the Congress of the United States has enacted the Housing and Community Development Act of 1974, and subsequent amendments to such Act, hereinafter called "ACT"; and WHEREAS, Title I of ACT consolidates previously separate grant programs for open space, public facility loans, water and sewer grants, urban renewal, model cities, rehabilitation loans, and affordable housing; and WHEREAS, Title I makes available entitlement grants to: (1) cities whose 2020 Census population exceeds 50,000 persons; and (2) counties which qualify as an urban county; and WHEREAS, the term "urban county" means any county within a metropolitan area which: (1) is authorized under state law to undertake essential community development and housing assistance activities in its incorporated areas which are not units of general local government; and (2) has a combined population of 200,000 or more in such unincorporated areas and in its included units of local government: (A) in which it has authority to undertake essential community development and housing assistance activities and which do not elect to have their population excluded; or (B) with which it has entered into cooperation agreements to undertake or to assist in the undertaking of essential community development and housing assistance activities; and WHEREAS, four cities (Albany, Emeryville, Newark and Piedmont) in Alameda County have a 2020 Census population of less than 50,000 and desire to participate in the Alameda County Urban County; and one city has a population over 50,000 (Dublin) and desires to participate in the Alameda County Urban County; and WHEREAS, the participating cities, combined with the unincorporated portions of the County of Alameda, form a combined 2020 Census population of 200,000 or more persons, thereby qualifying as an urban county, and becoming eligible for an entitlement of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds; and Cooperation Agreement Page 1 24 WHEREAS, the participating cities agree that by executing these cooperative agreements they may not apply for grants under the Small Cities or State CDBG Program from appropriations for fiscal years during the period in which it is participating in the Urban County's CDBG program; and WHEREAS, the COUNTY and CITY cannot withdraw from the cooperative agreement while the Program Year 2024-2026 Agreement remains in effect. THEREFORE, it is agreed that: 1. CITY agrees that by executing this Agreement, CITY may not apply for grants from appropriations under the Small Cities or State CDBG Program from appropriations for fiscal years during the period in which it is participating in the Urban County' s CDBG program. 2. CITY agrees that by executing this Agreement, it may only receive a portion of the formula allocation under the HOME Program through the Urban County. If the Urban County does not receive a portion of the HOME formula allocation, the CITY cannot form a HOME Consortium with other local governments. An Urban County or a unit of government participating with the Urban County may apply to the State of California for HOME funds, if the State allows. 3. CITY agrees that by executing this Agreement, it may only receive the formula allocation under the Emergency Solutions Grant (ESG) Program through the Urban County. If the Urban County does not receive the ESG formula allocation, the CITY cannot form an Urban County with other local governments. An Urban County or a unit of government participating with the Urban County may apply to the State of California for ESG funds, if the State allows. 4. The Department of Housing and Urban Development, hereinafter called "HUD", has made a determination that the COUNTY has the essential powers to operate as an urban county. 5. CITY and COUNTY will cooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities, specifically urban renewal and publicly assisted housing, hereinafter called "PROGRAM", to be carried out with annual Community Development Block Grant and HOME Investment Partnership funds, hereinafter called "CDBG/HOME FUNDS", from Federal fiscal years 2024, 2025 and 2026 appropriations and from any program income generated from the expenditure of such funds. Community renewal and lower income housing assistance activities shall be those designated or referred to within Title I of the ACT and Title II of the Cranston -Gonzalez National Affordable Housing Act and the regulations issued pursuant thereto. 6. To carry out community renewal and lower income housing activities, COUNTY shall distribute to CITY a portion of the CDBG funds received under the ACT from Federal fiscal years 2024, 2025 and 2026 appropriations. The funds distributed to CITY shall be determined in accordance with such needs, objectives, or strategies, as COUNTY shall decide. In preparing the needs, objectives or strategies, COUNTY shall consult with CITY before making its determinations. The distribution of HOME funds to the Urban County is based on the review and Cooperation Agreement Page 2 25 recommendations of proposals received in response to an annual RFP. 7. It is expressly understood that as a recipient of the CDBG/HOME/ESG Funds from HUD, COUNTY and CITY must take all actions necessary to assure compliance with the Urban County's certification required by Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, regarding Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and to affirmatively further fair housing. COUNTY and CITY must comply with Section 109 of Title I of the Housing and Community Development Act of 1974, which incorporates Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of 1975, and other applicable laws, and all regulations issued pursuant thereto. Further, urban county funding for activities in or in support of any city that does not affirmatively further fair housing within its own jurisdiction or that impedes the county's actions to comply with its fair housing certification is prohibited. a. COUNTY and CITY must have a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individual engaged in non-violent civil rights demonstrations; and b. COUNTY and CITY must have a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within jurisdictions. 8. CITY may not sell, trade, or otherwise transfer all or any portion of the CDBG/HOME FUNDS to a metropolitan city, urban county, unit of general local government, or Indian tribe or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non-federal considerations, CITY must use the CDBG/HOME FUNDS for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended and Title II of the Cranston -Gonzalez National Affordable Housing Act. 9. Pursuant to 24 CFR 570.501(b), CITY is subject to the same requirements applicable to sub -recipients, including the requirement of a written agreement set forth in CFR 570.503. 10. CITY shall inform COUNTY of any income generated by the expenditure of CDBG funds received by the CITY. CITY shall pay any such program income to COUNTY or CITY may retain program income subject to requirements set forth in this Agreement and with written approval of the COUNTY. Any program income CITY is authorized to retain may only be used for eligible activities in accordance with all CDBG requirements as may then apply. COUNTY has the responsibility for monitoring and reporting to HUD on the use of any such program income thereby requiring appropriate record keeping and reporting by CITY as may be needed for this purpose. In the event of close-out or change in status of CITY, any program income that is on hand or received subsequent to the close-out or change in status shall be paid to COUNTY. 11. In regard to real property that is within the control of CITY due to being acquired or improved in whole or in part using CDBG funds, CITY must give timely notification to COUNTY for any modification or change in the use of the real property from that planned at the time of acquisition or improvement including disposition. CITY must reimburse COUNTY in an amount equal to the current fair market value (less any portion thereof attributable to expenditures of non - Cooperation Agreement Page 3 26 CDBG funds) of property acquired or improved with CDBG funds that is sold or transferred for a use which does not qualify under the CDBG regulations. Any program income generated from the disposition or transfer of property prior to or subsequent to the close-out, change of status or termination of the cooperation agreement between COUNTY and CITY shall be paid to COUNTY. 12. CITY shall provide COUNTY with all information concerning CITY and the activities CITY carried out under this agreement which COUNTY requires to prepare 1) documents required to be submitted to HUD, 2) annual performance report, 3) such other documents as COUNTY may require to carry out community renewal and lower income housing activities or meet Federal requirements. All information shall be submitted on forms prescribed by COUNTY. In addition, CITY agrees to make available upon request all records concerning the activities carried out under this Agreement for inspection by COUNTY or Federal officials during regular business hours. 13. CITY designates City Administrator or his/her designee as the official to whom all notices and communications from COUNTY shall be directed. COUNTY's duty to notify CITY shall be complete when the communication is sent to the designated official or deputy. It is the exclusive duty of the designated official or deputy to notify the correct individuals or departments within CITY. 14. CITY shall defend, indemnify and hold harmless COUNTY, its officers, employees and agents from liability for any fines, penalties, or damage of any type accruing to COUNTY by virtue of CITY's failure to comply with any requirement of the ACT and the regulations issued pursuant thereto, or failure to comply in any respect with the PROGRAM described herein. Further, CITY shall defend, indemnify and hold harmless COUNTY, its officers, employees, and agents against any and all liability for injury or damage caused by any act or omission of CITY or any of CITY's employees or volunteers in the performance of the contract or PROGRAM and CITY shall hold COUNTY harmless from any and all loss occasioned in the performance of, or otherwise arising out of, this Agreement or PROGRAM. 15. This Agreement shall go into effect immediately upon the signature of both parties and shall continue in full force and effect until the CDBG/HOME/ESG Funds and program income received with respect to activities carried out during the three-year qualification period (Federal fiscal years 2024, 2025 and 2026) are expended and the funded activities completed. CITY will be included in the urban county for the entire three years period funded by CDBG/HOME/ESG Funds from Federal fiscal years 2024, 2025 and 2026. Appropriations may not be withdrawn from the urban county during this agreement period. During the three year qualification period, Federal fiscal years 2024, 2025 and 2026, CITY and any other included unit of general local government shall not withdraw from nor be removed from the Urban County and cannot terminate or withdraw from the cooperation agreement. 16. CITY agrees that it has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non- violent civil rights demonstrations and a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non- violent civil rights demonstrations within its jurisdiction. Cooperation Agreement Page 4 27 17. CITY agrees that COUNTY has final responsibility for selecting CDBG, ESG and HOME activities and annually filing the Annual Action Plan with HUD, although if the COUNTY is a member of a HOME Consortium, the Consortium submits the Plan developed by the COUNTY. 18. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement. [SIGNATURES TO FOLLOW ON THE NEXT PAGE] Cooperation Agreement Page 5 28 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first mentioned above. CITY OF DUBLIN, COUNTY OF ALAMEDA A municipal corporation Linda Smith, City Manager President, Board of Supervisors DATE: DATE: ATTEST: ATTEST: Marsha Moore, City Clerk Clerk, Board of Supervisors DATE: DATE: APPROVED AS TO FORM: APPROVED AS TO FORM: Donna R. Ziegler, County Counsel John Bakker, City Attorney DATE: DocuSigned by: By: ,l,t t,IA..� t od `A 8 24 Kathleen T° IM1, deputy County Counsel By signing above, signatory warrants and represents that he/she executed this Agreement in his/her authorized capacity and that by his/her signature on this Agreement, he/she or the entity upon behalf of which he/she acted, executed this Agreement. Cooperation Agreement Page 6 29 Attachment 3 r DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL DATE: May 2, 2023 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.ECT: Community Development Block Grant Program Review Prepared by: Jason Earl, Senior Management Analyst EXECUTIVE SUMMARY: Agenda Item 8.2 The City Council will receive a report on the Community Development Block Grant (CDBG) program and consider becoming an Entitlement City and receiving funding directly from the U.S. Department of Housing and Urban Development (HUD) starting in 2024 or remaining in the Alameda County Urban County program. The City currently receives CDBG funding through the Urban County program administered by Alameda County Housing and Community Development (HCD). The City must notify HUD and the County of its decision by June 12, 2023. STAFF RECOMMENDATION: Direct Staff to either remain in the Alameda County Urban County program or pursue Entitlement City status and notify HUD and Alameda County HCD of the decision. FINANCIAL IMPACT: If the City remains part of the Urban County program, there would not be a change in financial impact. Becoming an Entitlement City is estimated to cost approximately $50,000 for consultant services to plan the program in Fiscal Year 2023-24 and would also include a provision of staff time. Program administration costs, including staffing, would begin in Fiscal Year 2024-25. These costs could be partially offset by the CDBG program which allows 20 percent of the annual funding allocation. DESCRIPTION: Background The Community Development Block Grant (CDBG) program provides annual grants to states, cities, and counties to develop viable urban communities by expanding economic opportunities, principally for low-income and moderate -income persons and providing a suitable housing and living environment. The program is authorized under Title 1 of the Housing and Community Page 1 of 7 30 Development Act of 1974 and is administered by the U.S. Department of Housing and Urban Development (HUD). CDBG funds are allocated to local jurisdictions by HUD using a calculation based on relative levels of pre-1940 housing, poverty, overcrowding, population, and regional growth lag. The City currently receives CDBG funds through the Urban County program administered by the Alameda County Department of Housing and Community Development (HCD). The Urban County program provides an opportunity for cities with a population of less than 50,000 to receive CDBG funds (cities over 50,000 may also choose to receive their CDBG allocation through the Urban County program). Dublin participates in the Urban County program through a Cooperative Agreement with unincorporated Alameda County and the cities of Albany, Emeryville, Newark, and Piedmont. Dublin's participation provides approximately $245,000 in CDBG funds to the Urban County program. A portion of those funds are allocated specifically for Public Service Grants to fund programs in Dublin, a portion is allocated to countywide service programs, and a portion is placed into a pool of funds for Capital Grants that are available to the Urban County jurisdictions on a competitive basis to fund capital improvements. Alameda County handles most of the required program administration, including preparation of the Consolidated Plan, Annual Action Plan, and Citizen Participation Plan. The Consolidated Plan must be prepared every five years, and includes a needs assessment, market analysis, anti -poverty strategy, goals, and projections. The Annual Action Plan is prepared by the County prior to the start of each fiscal year and identifies the goals, projections, and budget for the year. HUD also requires extensive reporting and program monitoring which is handled by the County. This includes year-end and quarterly reporting of data on people served, demographics, etc., administration of financial disbursements to grantees, periodic monitoring of every grantee, and financial reporting on expenditures and balances. Alameda County HCD administers certain CDBG funded programs that benefit all of the Urban County jurisdictions. This includes administering a contract with ECHO Housing to provide tenant/landlord and fair housing services. The County also funds the Minor Home Repair Program administered by Healthy Homes, and a Rental Housing Rehabilitation program that is available to Urban County jurisdictions. Dublin's share of discretionary CDBG funds are distributed through Public Service Grants and Capital Grants. Public Service Grants are awarded through the City's Human Services Grants Program to local non-profit organizations serving Dublin in conformance with program guidelines. These grants are awarded annually by the Dublin City Council after reviewing recommendations made by the Dublin Human Services Commission and includes funding for programs like Meals on Wheels for Dublin's Homebound Seniors. Public Service Grants are limited to 15 percent of the total annual CDBG funding allocation. Historically, Dublin has received more than its share of the 15 percent Public Service Grant allocation by utilizing funds that have gone unused by the other Urban County jurisdictions. For Fiscal Year 2022-2023, Dublin was awarded approximately $85,000 in public services grants. However, the City's allocation for Fiscal Year 2023-24 will be reduced to approximately $45,000. This allocation is lower due to other participants in the Urban Page 2 of 7 31 County program using their full allocation so there are fewer unused funds that Dublin can utilize. The Capital Grant program is administered by Alameda County to provide funding for capital improvements. Organizations apply to the County with the City taking the lead on the application submittal. Approximately $475,000 is available annually to share amongst the Urban County jurisdictions. This includes a $350,000+/- "capital pool" which is available for projects through an RFP program, and approximately $125,000 in previously programmed categories like Rental Housing Rehabilitation and Preservation, and Minor Home Repair. The "capital pool" funds are shared amongst the Urban County jurisdictions and awarded to projects on a competitive basis. The amount of money available for projects in Dublin can vary from year to year. Historically, Dublin's CDBG program efforts have primarily focused on Public Service Grants. However, during the 2020 program review, Staff identified the opportunity for the City to expand its CDBG program by utilizing Capital Grant Funds. Since that time, the City has secured $1,049,130 in capital funds for service organizations as shown in Table 1 below. For example, Dublin was able to obtain $419,130 in Capital Grant funding this fiscal year as part of the Urban County program. This includes $200,000 for Axis Community Health to acquire property for a new facility in Livermore which will serve the greater Tri-Valley area, and $219,130 for the School of Imagination to expand their parking lot and increase their program enrollment in Dublin. This funding level is more than the $350,000 capital grant budget due to carryover of prior year unspent capital funds. Table 1 below provides the capital grant funding amounts that Dublin received over the last 10 years. Table 1. Capital Grant Funding FY 2013-14 through FY2022-23 None FY2013-14 $ None FY2014-15 $ None FY2015-16 $ None FY2016-17 $ None FY2017-18 $ None FY2018-19 $ None FY2019-20 $ Open Heart Kitchen FY2020-21 $ 330,000 Open Heart Kitchen FY2021-22 $ 300,000 Axis Community Health FY2022-23 $ 200,000 School of Imagination FY2022-23 $ 219,130 Total $ 1,049,130 The City is required to act every three years to stay in the Urban County program or become an Entitlement City. The City first became eligible to participate as an Entitlement City in 2014 when the population reached 50,000. The City Council decided in 2014, 2017, and 2020 to remain in the Urban County program. The City must again decide to either: 1) remain in the Urban County program and enter into a new three-year Cooperative Agreement; or 2) become an Entitlement City and initiate the process to establish that program. The City must inform HUD and Alameda Page 3 of 7 32 County HCD of its decision by June 12, 2023. Analysis The City of Dublin has the option to become an Entitlement City and receive CDBG funds directly from HUD and to take over administration of the CDBG program beginning in 2024 or to remain part of the Urban County program. Table 3 below provides a comparison of the CDBG components for Dublin under the current Urban County program and as an Entitlement City. All dollar amounts are based on Fiscal Year 2022-2023 funding and by estimated Entitlement City figures provided by HUD. Table 2. Urban County & Entitlement City Program Matrix Program Component Urban County Program (FY 2024/2025) Entitlement City (Estimated) CDBG Annual Allocation (Allocated to programs noted below) $245,000 (estimated portion of Urban County funds attributable to Dublin's participation in the program. These funds are not the exclusive use of Dublin nor are they a cap on annual funding available to Dublin based programs and services) $245,000 +/- (estimated total amount that would be available to Dublin in year 1 of the program) Public Service Grants (To non-profit service providers and limited to 15% max. of annual allocation) $36,750 (Note: Can utilize unused Urban County funds to increase this amount. For example, Dublin awarded $85,000 in FY 2022/23 by accessing unused funds from other Urban County jurisdictions) $36,750 (estimated total amount based on the above number) Capital Grants (To non-profit organizations for capital improvements) Portion of $350,000 Urban County pool awarded by County (Recent examples include: Axis Health $200K facility acquisition funding, School of Imagination $219K parking lot expansion funding) $159,250 total to be allocated by Dublin through RFP (Unused funds can be carried over into future years with certain limitations) Economic Development (Job creation for small, low income owned or operated businesses) Amount varies per year and determined by program administration and funded from the annual CDBG allocation based on program priorities. Amount varies per year and determined by program administration and funded from the annual CDBG allocation based on program priorities. Tenant -Based Rental Assistance (Emergency housing funds available partly from CDBG program, and partly HOME) This program is administered directly through the Urban County. CDBG can be used for related support services outside of 15% services cap. HOME funds are used to provide financial assistance. Page 4 of 7 33 HOME Funds (rental assistance, down payment assistance, homebuyer counseling, affordable housing production) Share of $585,000 pool awarded on competitive basis to organizations serving Urban County jurisdictions. $75,000 (program administered by City, but funds continue to be administered by HCD) HUD 108 Loans (For Capital Projects or Programs as 20- year, low interest loan) Available only in partnership with an Entitlement City (example: Axis Health and the City of Livermore which is an Entitlement City) Up to 5x CDBG allocation (total cumulative balance of all outstanding HUD 108 Loans cannot exceed this amount) Program Administration (20% max. of annual allocation to cover program administration, and preparation of Consolidated Plan, Annual Action Plan, Citizen Participation Plan) $6,600 to Dublin; and $42,400 to Alameda County $49,000 to Dublin Consolidated Plan Prepared every 5 years by County with staff input (costs offset by Program Administration funds) Prepared every 5 years by the City (estimated cost: $50,000) Annual Action Plan and Citizen Participation Plan Prepared annually by County with staff Prepared annually by City (costs offset input (costs offset by Program by Program Administration funds) Administration funds) Monitoring and Reporting to I Prepared annually by the County HUD Prepared annually by the City Comparable/Nearby Entitlement Cities Table 3 below provides the CDBG allocation for FY2022-23 for comparable and nearby Entitlement Cities. Table 3. Comparable Entitlement City Annual Allocations Walnut Creek (Contra Costa County) 69,700 $ 357,700 Pleasanton (Alameda County) 78,250 $ 338,800 Milpitas (Santa Clara County) 79,000 $ 648,000 Livermore (Alameda County) 86,800 $ 334,200 Dublin (Alameda County) 71,700 $ 245,000 *Entitlement City figures for Dublin estimated based on information provided by HUD. Census Data from US Census Bureau The cities of San Ramon (population 86,000) and Brentwood (population 65,000) are examples similar in size and demographics to the City of Dublin that are not Entitlement Cities and are not currently planning to change their status. Page 5 of 7 34 As an example of how CDBG funds can be spent by category, Table 4 below shows how the cities of Livermore and Pleasanton propose spending their annual CDBG allocations as Entitlement Cities in FY2022-23. Table 4. Livermore and Pleasanton CDBG Allocation by Category FY2022-23 Program Component Pleasanton Capital Grants HUD Section 108 Loan Repayment (for Axis Community Health Clinic) $ 28,425 $ 24,749 Axis Community Health New Service Dental Site $ $ 195,483 Tri-Valley Haven - Rental Assistance $ 47,905 Abode Services - Rapid Re -Housing $ 32,184 Hagemann Farm Loan Repayment $ 91,445 Public Service Grants Open Heart Kitchen $ 22,023 $ 25,965 Spectrum Community Services $ 35,521 $ 24,857 Administration $ 76,725 $ 67,763 Total $ 334,228 $ 338,817 Urban County Program Over the last three years the City of Dublin has benefitted from being the Urban County program and having use of Capital Grants from the Urban County Pool while also using more than our share of the funds from the pool of Urban County Public Service Grants. If Dublin were to remain in the Urban County program, there would continue to be opportunities for the City to seek unused funds from both pools of money to fund programs in Dublin using CDBG funds. The City could also potentially utilize CDBG Economic Development funds for job creation/retention activities including establishment, stabilization and expansion of small businesses if they are either owned by low-income people or employ low-income workers. Entitlement City Becoming an Entitlement City would provide the City with greater control over CDBG program administration and certainty regarding annual Capital Grant funding. However, it could also reduce the maximum amount of potential Capital Grant and Public Service Grant funding available each year because the City could no longer utilize unused funds in the Urban County pool. The change in control would also result in additional work to administer the program including the upfront consultant time and cost to plan the program. Staff believes significant additional staff time would be necessary to manage the CDBG start up and ongoing program administration. This would either come in the form of redeployed staff resources or staff augmentation through a consultant. ENVIRONMENTAL REVIEW This information report is not subject to the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378 as it does not meet CEQA's definition of a Page 6 of 7 35 project and will not result in direct or indirect physical changes in the environment. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: None. Page 7 of 7 36