AGENDA CAPTION:
Title
Receive a staff presentation and hold a Public Hearing to obtain the views of citizens on the use of $727,486 in new Community Development Block Grant (CDBG) funding and $144,200 in reallocated Community Development Block Grant (CDBG) funding for housing, social services, public facilities, and infrastructure, and the selection of projects for the 2022-2023 Community Development Block Grant (CDBG) Action Plan; and provide direction to staff.
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Meeting date: June 7, 2022
Department: Planning and Development Services
Amount & Source of Funding
Funds Required: Click or tap here to enter text.
Account Number: Click or tap here to enter text.
Funds Available: Click or tap here to enter text.
Account Name: Click or tap here to enter text.
Fiscal Note:
Prior Council Action: On May 19, 2020, the City Council approved Resolution 2020-105R approving a consolidated plan for fiscal years 2020-2024 that provides guidance for annual Community Development Block Grant (CDBG) funding allocations.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Workforce Housing
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☒ Neighborhoods & Housing - Well maintained, stable neighborhoods protected from encroachment of incompatible land uses
☒ Parks, Public Spaces & Facilities - Well maintained public facilities that meet needs of our community
☐ Transportation - Choose an item.
☐ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
During the Consolidated Planning process last year, the City Council chose the following as the top three priorities for CDBG Entitlement funding for the years 2020-2024.
• Affordable Housing
• Public Services
• Public Facilities
Affordable Housing and Public Services as priority categories provide the common themes found in the surveys and data. Choosing Public Facilities offers the ability to improve City parks or community centers to improve the overall well-being of citizens.
New Funding. This year the City will receive $727,486 from HUD. In order to receive this funding, the City must submit an action plan by August 16 that includes allocation of the funding to specific programs. Annually, the City holds an application process for agencies and City of San Marcos departments to submit program ideas. The proposed timeline this year is as follows:
03/13 Notice of Funding Availability Published
03/27-04/29 Applications Available, due 4/29
06/07 Public Hearing, presentation of applications to City Council
07/01-08/02 Public comment period
08/02 City Council decision on funding awards to programs
08/16 Deadline for Annual Action Plan submission to HUD
Applications have been posted to the City’s website here:
<https://sanmarcostx.gov/3065/CDBG-Action-Plans>
All applications will be presented to City Council on June 7, with a staff recommendation for funding awards to programs. Staff conducts a risk assessment on each applicant, as well as an evaluation of the project’s impact on the community in consideration of limited funding. Criteria for the risk assessment and the project evaluation are attached. In brief, the evaluation criteria are as follows:
1. Activity Need and Justification: Maximum of 35 Points
a. Need: Maximum of 15 Points
b. Consolidated Plan Priority: Maximum of 5 Points
c. City Council Strategic Initiative: Maximum of 15 Points
2. Impact and Cost Effectiveness: Maximum of 30 Points
3. Implementation: Maximum of 25 Points
4. Past Performance or Letters of Reference: Maximum of 10 Points
Reallocated Funding. In addition to the new funding, Staff proposes reallocating the following unused funding from the Homebuyer Assistance (Down Payment and Closing Costs) Program. This program is unfortunately languishing because the people whose income qualifies for the program are currently unable to find a house they can afford in San Marcos. Income qualification is 80% of area median income, which until recently was $55,400 for one person or $79,100 for a family of four. Despite staff attempts at marketing the program, the following funding remains available:
Program Year Amount
2019-2020 $2,800
2020-2021 $34,000
2021-2022 $87,000 (the entire year’s funding)
Program Income $20,400
TOTAL $144,200
Regarding program income, because homes are selling quickly and at a premium, participants in the program have at times sold their homes before the end of the term of the forgivable loan, paying back the City a pro-rated amount from their profits.
If Council agrees with reallocating this funding, approximately $727,486 + $144,200 = $871,686 is available to allocate for Program Year 2022-2023.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
A staff committee reviewed and scored all applications, then discussed the applications to create the recommendation for funding. In summary, staff recommends funding all applications since they will all have a distinct impact on San Marcos. Recommendations are as follows:
TOTAL: $871,686
PUBLIC SERVICES CATEGORY $109,120 recommended
o Limited to $109,122 total per HUD restrictions (15% of annual allocation)
o Staff committee recommends funding each less than requested in order to fund all
Habitat for Humanity Housing Counseling - Requested $23,656 Recommended $11,965
• Workshops on the basics of personal finance and home ownership
Court Appointed Special Advocates - Requested $60,000 Recommended $39,725
• Advocacy services for San Marcos children and youth in state foster and substitute care
Hays Caldwell Women’s Center - Requested $45,000 Recommended $33,500
• Direct services for women, men, and children who are unhoused due to family violence
Salvation Army - Requested $50,000 Recommended $23,930
• Financial assistance for utilities, shelter, food, medicine, clothing, transportation
PUBLIC FACILITIES CATEGORY $41,000 recommended
Paul Pena Park Improvements - Requested $41,000 Recommended $41,000
• Replacing existing playground equipment, expanding walking path
• Requesting an additional $41,000 to combine with the $159,500 funded last year to support increased costs due to market conditions
ADMINISTRATION CATEGORY $145,496 recommended
o Limited to $145,496 total per HUD restrictions (20% of annual allocation)
o Pays most of Community Initiatives staff salaries (the rest is paid by general fund)
HOUSING REHABILITATION CATEGORY $576,070 recommended
o Meets a Council Strategic Initiative
o Provides for an established need
o $25,000 per home; may be increased to $50,000 per home after estimators review the 2022 applicants in June and July, 2022
o NEW: This year each includes 15% to help cover administrative costs (staff salaries), which the City general fund has typically been covering
Rental Rehab - Requested $500,000 Recommended $362,745
• Landlords must meet income restriction of making less than 80% area median income
• Single family homes emphasized; 1-4 units are eligible
• Recommendation is less than requested since this is a new program and it is uncertain how many homes will be eligible; Code Compliance is aware of some that are
Southside Owner Occupied Rehab - Requested $115,000 Recommended $55,730
• Recommendation is less than requested since Southside has $392,000 to spend from prior years. (Program was put on hold by the City per HUD’s requirement for revamping.)
City Owner Occupied Rehab - Requested $141,400 Recommended $157,595
• Recommendation includes all leftover funding, to be put toward housing rehab to align with the Council Strategic Initiative