City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 17, 2017
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of the City’s Fiscal Year (FY) 2018 Action Plan for Housing and Community Development.
BODY
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ISSUE: Consideration of the City’s Fiscal Year (FY) 2018 Action Plan for Housing and Community Development.
RECOMMENDATION: That City Council:
1. Adopt the FY 2018 Action Plan for Housing and Community Development, which includes the City’s application for Fiscal Year (FY) 2017 funding for an estimated $805,792 in Community Development Block Grant (CDBG) and $395,514 in HOME Investment Partnerships (HOME) Program funds; and
2. Authorize the City Manager to execute all necessary documents to facilitate submission of the Action Plan to HUD, as appropriate.
BACKGROUND: The City of Alexandria’s Consolidated Plan for Housing and Community Development has been prepared in accordance with regulations set forth by the U. S. Department of Housing and Urban Development (HUD). These regulations require that participants in certain HUD programs including, but not limited to, the CDBG and HOME programs, submit an annual Action Plan to provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year of its current five-year Consolidated Plan period, to address the priority needs and specific goals identified by the Consolidated Plan. A Citizen Summary of the FY 2018 Action Plan is provided as an attachment.
The Action Plan describes the City’s specific objectives to be undertaken or accomplished during FY 2018 to address the overall needs for affordable housing, shelter and services for persons experiencing homelessness, housing for persons with special needs, and community and economic development. The plan is the third Action Plan prepared for the FY 2016 to
FY 2020 Consolidated Plan period, and is consistent with ongoing program activities as well as core services included in the City FY 2018 Budget.
It is noted that the recently released America First Budget Blueprint proposes significant potential reductions to the HUD budget, including eliminating future CDBG and HOME fund allocations, however, any future cuts would be effective during City FY 2019 beginning July 1, 2018. With regard to FY 2018, Congress has approved a budget package (currently pending President Trump’s signature) which would largely maintain federal funding for housing at current levels, including CDBG and HOME allocations to Alexandria.
The Office of Housing prepares the information included in the Action Plans in consultation with other City departments and social services groups, such as the Department of Community and Human Services, the Alexandria Redevelopment and Housing Authority (ARHA), the City of Alexandria Partnership to Prevent and End Homelessness, and numerous area agencies and nonprofit organizations that provide services for very low, low and moderate income persons.
DISCUSSION: The Citizen Summary provides highlights of planned federally funded program activities and investments. The Citizen Summary also demonstrates the City’s anticipated initiatives to leverage local, state, federal and private resources to support programs that serve and empower the very low, low, and moderate income targeted populations in the Alexandria community, as reported in the FY 2016 to FY 2020 Consolidated Plan that was submitted to HUD in May 2015.
Several Plans adopted by City Council (e.g., Housing Master Plan, ARHA Strategic Plan, The Alexandria of Our Future: A Livable Community for All Ages Strategic Plan on Aging, Child and Youth Master Plan, and the City’s Strategic Plan), provide excellent roadmaps of the activities, services and resources the City expects to dedicate for various objectives of interest to HUD. Throughout these Plans the need for the preservation and addition of affordable housing has been highlighted as a high priority so housing related activities remain the continued focus of CDBG and HOME funds use in the FY 2018 Action Plan.
As required by HUD, the FY 2018 Action Plan was released for a 30-day public comment period on April 5 and ended on May 4. The Action Plan also contains the City’s applications for an estimated $805,594 in CDBG funds and $395,597 in HOME funds. Under the budget package just approved by Congress, it is likely these estimates are close to what will be awarded. Housing staff will notify City Council of the final amounts when those are determined. Most of the CDBG funds ($503,187) are proposed for the use of the Home Rehabilitation Loan Program and the HOME funds ($375,000) are proposed for the use of the Housing Opportunities Fund as described on page 10 of the Citizen Summary. These uses support affordable housing development pursuant to the Housing Master Plan target of creating new affordability in 2000 units by 2025.
After the Federal Fiscal Year (FFY) 2017 Budget is signed by the President, the proposed activities budget provided in the Action Plan will either increase or decrease from the estimated funding levels to match the actual FFY 2017 formula program allocation amounts. These amounts are anticipated to be announced by HUD 30 to 60 days after Congress approves the FFY 2017 Budget. When the FFY 2017 Budget is approved, increases or decreases in the CDBG and HOME programs will affect the Home Rehabilitation Loan Program and the Housing Opportunities Fund respectively.
Release of Alexandria’s Plan was announced by notices placed in local and national media. The Citizen Summary was distributed by email to several hundred interested parties on April 5. Both the Citizen Summary and the complete Action Plan are posted on the City’s website at www.alexandriva.gov/Housing, and hard copies are being distributed, upon request, by the Office of Housing. Comments from the public during the 30-day public comment period were submitted directly to the Office of Housing, and were solicited at two public hearings: one held as part of the Alexandria Housing Affordability Advisory Committee’s (AHAAC) April 20th meeting, and another held as part of City Council’s public hearing on April 22. During the AHAAC public hearing, comments were provided that the Plan be amended to include developing affordable assisted living as a proposed FY 2018 activity, and to note that separately tracking services for persons with HIV/AIDS may be outmoded. Staff noted that this category was added by HUD in the 1980’s to highlight federal funding priorities to address a national health crisis.
FISCAL IMPACT: Upon its approval of the FY 2018 Action Plan for Housing and Community Development, HUD will appropriate an estimated total of $1,201,309 in new federal funding to the City for FY 2018, including $805,792 in CDBG funds and $395,517 in HOME Program funds. The proposed uses are consistent with the City FY 2018 Budget.
ATTACHMENT: Citizen Summary of the FY 2018 Action Plan for Housing and Community Development
STAFF:
Emily A. Baker, Deputy City Manager
Helen S. McIlvaine, Director, Office of Housing
Eric Keeler, Deputy Director, Office of Housing
Lucinda Metcalf, Compliance Manager, Office of Housing