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HomeMy WebLinkAbout2020-58 - CDBG-CV Funding Amendment Round 1 Approved June 16, 2020 Round 3 Draft October 12, 2020 2019-2020 Annual Action Plan CDBG-CV Amendment City of Costa Mesa 2019 Annual Action Plan Substantial Amendment i OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Contents Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ........................................................................ 1 PR-05 Lead & Responsible Agencies – 91.200(b) ...................................................................................... 5 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................................................................... 6 AP-12 Participation – 91.105, 91.200(c) ................................................................................................. 14 Expected Resources AP-15 Expected Resources – 91.220(c) (1, 2) ......................................................................................... 17 Annual Goals and Objectives AP-20 Annual Goals and Objectives - 91.420, 91.2209(c)(3)&(e) ........................................................... 21 AP-35 Projects – 91.220(d)...................................................................................................................... 26 AP-38 Projects Summary ......................................................................................................................... 27 AP-50 Geographic Distribution – 91.220(f) ............................................................................................. 40 Affordable Housing AP-55 Affordable Housing – 91.220(g).................................................................................................... 41 AP-60 Public Housing – 91.220(h) ........................................................................................................... 42 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................................ 43 AP-75 Barriers to affordable housing – 91.220(j) ................................................................................... 45 AP-85 Other Actions – 91.220(k)............................................................................................................. 46 Program Specific Requirements ................................................................................................................. 49 Attachments Attachment 1: Five-Year and One-Year Consolidated Plan Outcomes Attachment 2: Public Hearing and Comment Period Public Notice Attachment 3: Map of CDBG Eligible Areas Attachment 4: Analysis of Impediments to Fair Housing Summary and Action Plan Attachment 5: HOME After Rehab Value HUD Certifications and SF-424 October 2020 Amendment Attachment A: Public Notice of Public Hearing and 5-Day Comment Period CDBG-CV Certifications and SF-424 City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 1 OMB Control No: 2506-0117 (exp. 07/31/2015) Amendment approved 6-16-20 Amended on October 20, 2020, to add CDBG CARES Act (CDBG-CV) Round 3 funds Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The City of Costa Mesa is a recipient of federal Community Development Block Grant (CDBG) and Home Investment Partnerships Grant (HOME) funds; these funds are awarded to the City by the U.S. Department of Housing and Urban Development (HUD). As a recipient of CDBG and HOME funds, the City is required to prepare a five-year strategic plan known as the Consolidated Plan. The Consolidated Plan identifies and prioritizes housing and community needs, and establishes five-year goals and objectives to address identified needs. The City’s current Consolidated Plan was approved by the City Council in May 2015, and covers Fiscal Year 2015-2016 through Fiscal Year 2019-2020. The Annual Action Plan is the component of the Consolidated Plan that is revised annually. It links the goals and objectives identified in the City’s 2015-19 Consolidated Plan and the planned annual expenditure of CDBG and HOME funds over a twelve-month period. The time period covered by the 2019-2020 Annual Action Plan begins July 1, 2019, and ends June 30, 2020. The City refers to this time frame as a Fiscal Year (FY). The 2019-2020 Annual Action Plan has been prepared utilizing HUD's eConPlan suite, a module of the Integrated Disbursement and Information System (IDIS). The Annual Action Plan includes several HUD required components including:  Resources – Federal and other public and private funds expected to be available to address priority needs and objectives identified in the Consolidated Plan, leveraging of non-federal funds, and match requirements for HUD programs.  Description of Activities to be Undertaken – Descriptions and information regarding activities the City will undertake during FY 2019-2020 to meet priority needs.  Geographic Distribution – A description of the geographic distribution of CDBG and HOME- funded activities.  Homeless and other Special Needs – An outline of the activities that will be taken during the fiscal year to address the needs of the City’s households at risk of homelessness, those currently homeless, and individuals that are not homeless, but that have special needs.  Other Actions – Actions the City will take during the fiscal year to address sub-strategies detailed in the Consolidated Plan (including actions to address impediments to fair housing).  Program Specific Requirements – CDBG and HOME program requirements.  Certifications & Standard Form 424 - HUD certifications related to the Consolidated Plan, Action Plan, and the CDBG and HOME programs. Also, the application forms to HUD for FY 2019-2020 CDBG ($1,041,150) and HOME ($454,223) funds. It is important to note that due to the delay in City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 2 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 approval of the 2019 federal budget, the City has estimated grant allocations for planning purposes; however, consistent with HUD directives (HUD Notice: CPD-19-01), prior draft Action Plans indicates that activities recommended for CDBG or HOME funding will be adjusted from the estimated funding levels to match actual allocation amounts once allocations are announced by HUD. October 2020 CDBG-CV Amendment On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act), was signed into law. Pursuant to the CARES Act, HUD has allocated $668,658 in Round 1 CDBG-Coronavirus (“CDBG-CV”) resources to the City of Costa Mesa to fund activities that prevent, prepare for, or respond to local community impacts of the Coronavirus. An amendment to the 2015-2019 Consolidated Plan/2019-2020 Annual Action Plan was approved by the City Council on June 16, 2020, to add Round 1 CDBG-CV funded activities to the 2019-2020 Annual Action Plan. On September 11, 2020, HUD notified the City it will receive $1,168,216 in Round 3 CDBG-CV funds. These funds must also be used to prevent, prepare for, and respond to the Coronavirus. A second amendment to the 2015-2019 Consolidated Plan/2019-2020 Annual Action Plan is necessary to fund additional services and programs that address the Coronavirus pandemic. 2. Summarize the objectives and outcomes identified in the Plan The 2015-19 Consolidated Plan identifies the following objectives and goals for the five-year period: High Priority Need  Owner Occupied Housing Rehabilitation: Rehab 50 units (HOME)  Code Enforcement: Inspect 1,250 Units (CDBG)  Emergency Shelter: Assist 10 Persons (CDBG)  Transitional Housing: Assist 75 Persons (CDBG)  Rapid Re-housing: Assist 75 Households (CDBG)  Homelessness Prevention: Assist 25 Persons (CDBG)  Senior Services: Assist 2,500 Persons (CDBG)  Disabled Services: Assist 150 Persons (CDBG)  Youth Services: Assist 1,250 Persons (CDBG)  Low/Moderate Income Services: Assist 750 Persons (CDBG)  Public Facilities: Benefit 2,500 Persons (CDBG)  Public Infrastructure: Benefit 7,500 Persons (CDBG)  Program Admin: 5 Years (CDBG and HOME) Low Priority Need  Rental Housing Rehabilitation: Rehab 1 Unit (HOME)  Rental Housing Acquisition: Acquire 1 Unit (HOME) City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 3 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20  Tenant-Based Rental Assistance: Assist 1 Household (HOME) 3. Evaluation of past performance The current year (FY 2018-19) is the fourth year of the 2015-2019 Consolidated Plan cycle. Year-end program accomplishments for this fiscal year are not available at this time; however, three-year accomplishment data for FY 2015-16, FY 2016-17, and FY 2017-18 are available. This information is provided in table format as Attachment 1. 4. Summary of Citizen Participation Process and consultation process During the preparation of the 2019-2020 Annual Action Plan, the following steps were taken to provide opportunities for public participation:  Distribution of a Notice of Availability of Funds for outside agencies.  Social service providers meeting to discuss Consolidated Plan priority needs and the public service grant application process (December 6, 2018).  Ad-hoc advisory committee public meeting to receive input regarding public service needs and to prioritize funding for FY 2019-20 public service grants (March 25, 2019).  Public Notice - 30-day comment period and public hearing  Public Hearing - City Council public hearing to receive additional public input and to approve the FY 2019-2020 Annual Action Plan (May 21, 2019). October 2020 CDBG-CV Amendment  Public Notice - A 5-day public review and comment period to provide members of the public an opportunity to review the proposed use of CDBG-CV funds.  Public Hearing - A City Council public hearing to provide an additional forum for public input regarding the proposed use of CDBG-CV funds. 5. Summary of public comments No public comments were received during the 30-day public review period. A summary of public comments received during other related meeting is provided in Section A-12 and Attachment 2. October 2020 CDBG-CV Amendment See Attachment A. 6. Summary of comments or views not accepted and the reasons for not accepting them All comments and views were accepted – none were rejected. October 2020 CDBG-CV Amendment See Attachment A. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 4 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 7. Summary The 2019-2020 Annual Action Plan is the link between the 2015-19 Consolidated Plan and the annual expenditure of federal CDBG and HOME funds. HUD has notified the City it will receive $1,041,150 in CDBG and $454,223 in HOME funds for FY 2019-2020. Prior year uncommitted funds and program income received during the year will also be available to carry out eligible activities. The Action Plan outlines the activities the City plans to undertake to address the priority housing and community needs identified in the Consolidated Plan. The time period covered by the 2019-2020 Annual Action Plan begins July 1, 2019, and ends June 30, 2020. The Action Plan identifies 12 of CDBG-funded activities and three HOME-funded activities for the 2019-2020 program year. October 2020 CDBG-CV Amendment HUD notified the City it will receive $668,658 in Round 1 CDBG-CV funds pursuant to the CARES Act. CDBG-CV funds must be used to prevent, prepare for, or respond to local impacts of the Coronavirus. CDBG-CV may not be used to pay costs if another source of financial assistance is available to pay these costs. For Costa Mesa to receive and use CDBG-CV funds, HUD instructed the City to amend the FY 2019- 2020 Annual Action Plan. This amendment should describe how CDBG-CV funds will be allocated. On June 16, 2020, the Costa Mesa City Council held a public hearing and approved the first amendment to the 2015-2019 Consolidated Plan/2019-2020 Annual Action Plan. The City Council allocated CDBG-CV funds for homelessness prevention and street outreach services that will prevent, prepare for, or respond to the impacts of the Coronavirus. Additionally, the City Council allocated a portion of CDBG-CV funds for program administration. On September 11, 2020, HUD notified the City it will receive $1,168,216 in Round 3 CDBG-CV funds. These funds must also be used to prevent, prepare for, or respond to the Coronavirus. A second amendment to the 2015-2019 Consolidated Plan/2019-2020 Annual Action Plan is necessary to increase funding for services and programs that address the Coronavirus pandemic. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 5 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 PR-05 Lead & Responsible Agencies – 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency CDBG Administrator COSTA MESA Housing & Community Dev/Development Services HOME Administrator COSTA MESA Housing & Community Dev/Development Services Table 1 – Responsible Agencies Narrative (optional) The City’s Housing and Community Development (HCD) Division of the Development Services Department is primarily responsible for the preparation of the Consolidated Plan, Annual Action Plan, and for administration of CDBG and HOME funds. Consolidated Plan Public Contact Information Mike Linares, CDBG/HOME Coordinator 77 Fair Drive, Costa Mesa, CA 92628 (714) 754-5678 – mike.linares@costamesaca.gov. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 6 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) 1. Introduction The Consolidated Plan/Annual Action Plan process requires jurisdictions to contact and consult with other public and private agencies, and residents when developing respective plans. For the FY 2019- 2020 Annual Action Plan, the City consulted with the public and private agencies listed below. Also listed below are the steps taken by the City to solicit the input of community residents. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)) The City of Costa Mesa does not own or manage public housing. Similarly, the City does not administer the Housing Choice Voucher or Section 8 Certificate rental assistance programs. The rental assistance voucher/certificate programs are administered in the City of Costa Mesa by the Orange County Housing Authority (OCHA). The City is a member of the OCHA Cities Advisory Committee, which provides OCHA staff with direct input regarding program policies. The City's Network for Homeless Solutions (NHS) is a taskforce comprised of representatives of various City departments, other local government agencies, nonprofit service agencies, and representatives of faith-based service providers. The main focus of the NHS is to find workable solutions to address the needs of the homeless, especially those with close ties to Costa Mesa. Additionally, the City works closely with other Orange County HUD-grantee communities to develop regional plans and to share program management data. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. Since 2014, the Network for Homeless Solutions (NHS) has been in place to directly address homeless issues in Costa Mesa. As outlined above, the NHS is a working group of City staff, representatives of service providers and faith-based organizations. The NHS is focused on establishing direct links to services for the homeless - especially for those with strong ties to Costa Mesa - and facilitating access to services and housing options. The NHS also serves as a liaison to the business community and resident groups. Another key element of this working group is the undertaking of a unique count of the City’s homeless with the assistance of local volunteers, churches, and Vanguard University (located in Costa Mesa). In 2017, this information was supplemented with data from the Orange County Point-In-Time Survey of the region’s homeless. The 2019 Point-In-Time Survey was conducted in January 2019; however, data will not be available for incorporation into the 2019-2020 Annual Action Plan. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 7 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City is not a recipient of Emergency Solutions Grant (ESG) funds; therefore, it does not assist the Orange County – Continuum of Care (OC-CoC) with the determination of ESG allocations, nor evaluating outcomes, or developing policies and procedures for the administration of the Homeless Management Information System (HMIS). 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities (see Table 2): City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 8 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type Public Housing Authority (PHA) What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Provided data regarding households receiving HUD rental assistance and regarding households on the wait list for housing assistance. 2 Agency/Group/Organization City of Costa Mesa Agency/Group/Organization Type Housing Services-homeless Other government - Local What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Strategy Non-Homeless Special Needs Anti-poverty Strategy Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Various City departments, commissions and City Council provided a variety of data and information. Also played a key role in identifying priorities and the allocation of HUD funds. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 9 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 3 Agency/Group/Organization 211 Orange County Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Homeless Management Information System (HMIS) Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Provided data regarding regional homeless, housing/service gaps for homeless, and HMIS management. 4 Agency/Group/Organization Fair Housing Foundation Agency/Group/Organization Type Service-Fair Housing What section of the Plan was addressed by Consultation? Impediments to Fair Housing Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Provided data regarding fair housing issues in the community and input regarding impediments to fair housing. Also, assisted in developing action steps to address impediments to fair housing. 5 Agency/Group/Organization Mercy House Transitional Living Centers Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Strategy City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 10 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency assisted with the development of the City's homeless strategy and implementation of service/housing programs to assist the homelessness and those at risk of becoming homeless. 6 Agency/Group/Organization Families Forward Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation? Homeless Needs - Families with children Homelessness Strategy Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency helped identify needs and assisted with implementation of the City's homeless service/housing strategy with a focus on homeless families with children. 7 Agency/Group/Organization Colette's Children's Home Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation? Homeless Needs - Families with children Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency helped identify needs and assisted with implementation of the City's homeless service/housing strategy with a focus on homeless women and women with children. 8 Agency/Group/Organization Elwyn California Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Economic Development Anti-poverty Strategy City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 11 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency provided input regarding the City's special needs populations, specifically employment opportunities for persons with developmental disabilities. 9 Agency/Group/Organization Youth Employment Services Agency/Group/Organization Type Services-Employment What section of the Plan was addressed by Consultation? Economic Development Youth Services Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency helped identify needs and provided input regarding the City's youth, specifically employment needs/opportunities for youth age 16 to 24. 10 Agency/Group/Organization Community SeniorServ Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Anti-poverty Strategy Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency helped identify needs and provided input regarding the City's special needs populations, specifically seniors and frail elderly. 11 Agency/Group/Organization Council on Aging Orange County Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Anti-poverty Strategy City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 12 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency helped identify needs and provided input regarding the City's special needs populations, specifically seniors, frail elderly/disabled adults. Also provided data regarding special needs housing resources. 12 Agency/Group/Organization Vanguard University Agency/Group/Organization Type University What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homelessness Strategy Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Count and survey of Costa Mesa homeless. 13 Agency/Group/Organization Trellis Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency helped identify needs and assisted with implementation of the City's homeless service/housing strategy with a focus on chronic homeless. Identify any Agency Types not consulted and provide rationale for not consulting The City made an effort to have an open consultation process. No agency/service type was knowingly excluded from the process. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 13 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care 211-OC Helped determine needs and program goals to address homelessness in the City Multi-Jurisdictional Analysis of Impediments to Fair Housing OC HUD Grantee Cities Identified multi-jurisdictional fair housing impediments that were applicable to the City and which were incorporated into Consolidated Plan/Annual Action Plan goals 5-Yr. & 1-Yr. Public Housing Authority (PHA) Plan Orange County Housing Authority (OCHA) OCHA information regarding the housing needs of lower income renter households, which were incorporated into the Consolidated Plan/Annual Action Plan City of Costa Mesa Capital Improvement Plan City of Costa Mesa Identified projects within CDBG-eligible areas and citywide, which were used to establish Con Plan/Action Plan goals City of Costa Mesa Housing Element City of Costa Mesa Identified housing needs, goals, and program for all economic segments of City 2017 Costa Mesa Homeless Count Vanguard University/211-OC Costa Mesa homeless census data was utilized to prioritize use of limited funding and to identify the most vulnerable among the City's homeless Table 3 – Other local / regional / federal planning efforts Narrative (optional) City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 14 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-12 Participation – 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The City took several steps to obtain the input of community residents and stakeholders in order to develop the 2019-2020 Annual Action Plan. Consultation efforts included public meetings (resident advisory committee and City Council) and notices. Specifically, for the 2019-2020 planning process, the City utilized its internet webpage and newspaper notices, to inform residents and stakeholders of the opportunity to provide input and to review/comment on the draft Action Plan. All City Council meetings were notices in local English and Spanish language newspapers of general circulation. Additionally, the draft 2019-2020 Annual Action Plan was posted on the City’s website for public review and comment, and hard copies were made available during the required 30-day public comment period which was held from April 19, 2019, to May 20, 2019 (see Attachment 2). Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) 1 Public Meeting Social Service Providers 17 nonprofit service providers held 12/6/18 Speakers provided information on community service needs None NA City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 15 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) 2 Public Meeting Non- targeted/broad community Citizen Advisory Committee - 9 committee members discussed priority public service needs (3/25/19) One individual requested that the committee consider housing needs in the community, why the Senior Center does not serve younger adults, and why one of the applicants is displacing residents None NA 3 Newspaper Ad Non-English Speaking - Specify other language: Spanish Non- targeted/broad community 30-day public comment period (4/19/19 to 5/20/19) None None NA 4 Public Hearing Non- targeted/broad community 5/21/19 Regular City Council meeting Reps of 3 applicants thanked the Council or requested funding consideration. 3 members of the public urged the Council to approve funding recommendations None NA City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 16 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) 5 Internet Posting Non- targeted/broad community Public notice of 5-day public comment period and public hearing See Attachment A None www.costamesaca.gov 6 Public Hearing Non- targeted/broad community 6/16/20 City Council public hearing See Attachment A None NA 7 Internet Posting Non- targeted/broad community Public notice of 5-day public comment period and public hearing See Attachment A TBD www.costamesaca.gov 8 Public Hearing Non- targeted/broad community 10/20/20 City Council public hearing TBD TBD Pending Table 4 – Citizen Participation Outreach City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 17 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Expected Resources AP-15 Expected Resources – 91.220(c) (1, 2) Introduction Fluctuations in federal funding for the CDBG and HOME programs make it difficult to estimate the amount that will be available over the five- year time period of the Consolidated Plan. With the loss of redevelopment funding in 2012, the only funds that may be available to implement the Consolidated Plan are City General Funds and local Housing Authority resources. Rental assistance voucher/certificate resources may also be available via OCHA. Prior year grant funds and anticipated program income may also be available during the fiscal year. The City’s application for CDBG and HOME funds is in the form of the SF 424 (attached). October 2020 CDBG-CV Amendment On April 2, 2020, HUD notified the City it will receive $668,658 in Round 1 CDBG-CV funds pursuant to the CARES Act. On September 11, 2020, HUD notified the City it will receive $1,168,216 in Round 3 CDBG-CV funding. As directed by HUD, CDBG-CV funding sources are combined and summarized below. Priority Table Program Source of Funds Uses of Funds Expected Amount Available Year 5 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG public - federal Acquisition Admin & Planning Economic Develop Housing Public Improvements Public Services 1,041,150 0 0 1,041,150 0 Annual CDBG allocation from HUD and prior year funds City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 18 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Program Source of Funds Uses of Funds Expected Amount Available Year 5 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ HOME public - federal Acquisition Homebuyer assistance Homeowner rehab Multifamily rental new construction Multifamily rental rehab New construction for ownership TBRA 454,223 0 0 454,223 0 Annual HOME allocation from HUD, anticipated program income, and prior year funds General Fund public - local Other Homeless services Public Services 0 0 0 0 0 City General Fund & Housing Authority resources to provide homeless outreach, engagement and case management services. Estimated at $1,000,000 per year subject to annual authorization by the City Council. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 19 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Program Source of Funds Uses of Funds Expected Amount Available Year 5 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Other Rental Assistance public - federal Other Rental Assistance 0 0 0 0 0 Value of approximately 580 rental housing vouchers & certificates assistance is unknown. Program is administered by the OCHA. CDBG-CV Public- federal To prevent, prepare for and respond to the coronavirus 1,836,874 0 0 1,836,874 0 To prevent, prepare for and respond to the coronavirus Table 5 - Expected Resources – Priority Table Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied In past years, the City was able to leverage federal funds with local redevelopment funds. In 2012 the State Legislature and Governor Brown passed legislation to dissolve all redevelopment agencies throughout the State. As a result, this funding source is no longer available. (Although some resources are accessible via the local Housing Authority.) For the foreseeable future, it appears that the City will continue to allocate limited General Fund and local Housing Authority resources for homeless services. For FY 2019-20, approximately $1,000,000 will be committed for these services. There is no match requirement for the CDBG program. The City has implemented a CalHome owner-occupied housing rehabilitation loan program that leverages a HOME-funded grant. Consequently, loan expenditures will provide a match source for the City’s HOME program. The City will explore the use of Federal Rental Rehabilitation loan repayment funds to implement a similar loan/grant program to generate additional match for its HOME program. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 20 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 October 2020 CDBG-CV Amendment On March 27, 2020, the CARES Act was signed into law. In April 2020, Costa Mesa was allocated $668,658 in Round 1 CDBG-CV to undertake activities that prevent, prepare for, or respond to local community impacts of the Coronavirus. On September 11, 2020, HUD notified the City it will receive $1,168,216 in Round 3 CDBG-CV funding, bringing the City’s total allocation of CDBG-CV funds to $1,836,874. If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Costa Mesa is considered a built-out community with little vacant land available for new development. The City has begun to recycle land to accommodate growth. The City’s Housing Element identifies City owned properties and considers various options for the sites. Development opportunities are identified in the Housing Element and are mirrored in the 2015-19 Consolidated Plan. During FY 2018-19, the City utilized over $6,000,000 in non-HUD funds to purchase a property that will be rehabilitated to provide 50 emergency shelter beds for homeless adult men and women. The addition of these shelter beds will help address priority needs identified in the City’s Consolidated Plan. Discussion Estimated funding resources to implement the City’s 2019-2020 Annual Action Plan are limited. For FY 2019-20, the City will receive $1,041,150 in CDBG funding and $454,223 in HOME funding. Prior year funds for CDBG and HOME may also be available. In recent years, HOME housing rehab loan repayments have provided the City with additional funding; however, this source is susceptible to the fluctuations of the economy and is unpredictable. For the foreseeable future, the City will continue to support homeless service programs serving individuals with strong ties to Costa Mesa with local funds. The City will also continue to support OCHA’s efforts to secure new rental assistance resources. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 21 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Annual Goals and Objectives AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Owner Occupied Housing Rehabilitation 2015 2019 Affordable Housing Citywide Owner Occupied Housing HOME: $275,000 CDBG: $43,300 Homeowner Housing Rehabilitated: 11 Household Housing Unit 2 Rental Housing Acquisition 2015 2019 Affordable Housing Citywide Rental Housing Acquisition/Rehabilitation HOME: $133,801 Other: 1 Other 3 Program Administration 2015 2019 Administration Citywide Program Administration CDBG: $208,230 HOME: $45,422 CDBG-CV Round 1: $100, 299 CDBG-CV Round 3: $233,643 Other: 1 Other City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 22 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 4 Code Enforcement 2015 2019 Affordable Housing CDBG Eligible Areas Housing Code Enforcement CDBG: $282,000 Housing Code Enforcement/Foreclosed Property Care: 150 Household Housing Unit 5 Public Facility Improvements 2015 2019 Non-Housing Community Development CDBG Eligible Areas Public Facilities CDBG: $351,450 Overnight/Emergency Shelter/Transitional Housing Beds added: 50 Beds 6 Homelessness Prevention 2015 2019 Homeless Citywide Homeless Services and Housing CDBG: $13,000 CDBG-CV Round 1: $387,321 CDBG-CV Round 3: $ 577,382 Homelessness Prevention: 8 Persons Assisted Homelessness Prevention: 1,115 Persons Assisted 7 Rapid Rehousing 2015 2019 Homeless Citywide Homeless Services and Housing CDBG: $27,385 Tenant-based rental assistance / Rapid Rehousing: 31 Households Assisted 8 Transitional Housing 2015 2019 Homeless Citywide Homeless Services and Housing CDBG: $15,175 Homeless Person Overnight Shelter: 13 Persons Assisted 9 Youth Services 2015 2019 Non-Housing Community Development Citywide Youth Services CDBG: $15,180 Public service activities other than Low/Moderate Income Housing Benefit: 250 Persons Assisted City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 23 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 10 Senior/Frail Elderly Services 2015 2019 Non-Homeless Special Needs Citywide Services for Elderly/Frail Elderly CDBG: $56,045 Public service activities other than Low/Moderate Income Housing Benefit: 500 Persons Assisted 11 Low- and Moderate- Income Persons 2015 2019 Non-Housing Community Development Citywide Services for Low- & Moderate-Income Persons CDBG: $29,385 CDBG-CV Round 1: $181, 038 CDBG-CV Round 3: $ 357,191 Public service activities other than Low/Moderate Income Housing Benefit: 220 Persons Assisted Public service activities other than Low/Moderate Income Housing Benefit: 120 Persons Assisted Table 6 – Goals Summary Goal Descriptions 1 Goal Name Owner Occupied Housing Rehabilitation Goal Description HOME funds for owner-occupied housing rehabilitation loans and grant, and CDBG funds for program admin. 2 Goal Name Rental Housing Acquisition Goal Description Funds available to assist CHDO with acquisition and/or rehabilitation of housing - project to be determined. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 24 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 3 Goal Name Program Administration Goal Description CDBG and HOME program administrative costs. CDBG-CV admin funds added in June and October 2020. 4 Goal Name Code Enforcement Goal Description Housing and building code enforcement to arrest deterioration in eligible residential areas. 5 Goal Name Public Facility Improvements Goal Description Improvements to public buildings and other facilities including ADA compliance. 6 Goal Name Homelessness Prevention Goal Description Homelessness prevention assistance and support services and funding for chronic homeless outreach services, including CDBG-CV funding to provide financial assistance, case management, and other housing and social service interventions for households and individuals impacted by the Coronavirus 7 Goal Name Rapid Rehousing Goal Description Access to permanent housing with wrap-around supportive services. 8 Goal Name Transitional Housing Goal Description Temporary housing and support services for up to two years 9 Goal Name Youth Services Goal Description Employment skills and placement services for young adults and teens. 10 Goal Name Senior/Frail Elderly Services Goal Description Counseling, case management, and meal programs for seniors and frail elderly. 11 Goal Name Low- and Moderate-Income Persons Goal Description Services for lower income households including fair housing outreach, education and enforcement services, and CDBG-CV funds to provide support services and other interventions to assist homeless individuals and households impacted by the Coronavirus Table 7 – Goal Descriptions City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 25 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b): It is estimated that seven extremely low-income (0%-30%), three low-income (a.k.a., very low-income 30%-50%), and one moderate-income (a.k.a. low-income 50%-80%) household will benefit from HOME-funded activities during FY 2019-20. If a Community Housing Development Organization (CHDO) project comes to fruition, the unit(s) will most likely be geared toward extremely low-income and very low-income households. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 26 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-35 Projects – 91.220(d) Introduction FY 2019-20 CDBG and HOME funding is allocated for the 17 activities listed below. # Project Name 1 Housing Rehabilitation 2 HOME Administration 3 CHDO Housing 4 Housing Rehabilitation Administration 5 Special Housing Code Enforcement 6 City of Costa Mesa Senior Social Services 7 Colette’s Children’s Home 8 Community SeniorServ Meal Programs 9 Council on Aging 10 Fair Housing Foundation 11 Mercy House Homelessness Prevention Program 12 Mercy House Homelessness Rapid Rehousing Program 13 Youth Employment Services Program 14 CDBG Administration 15 Property Improvements – 3175 Airway (Year 2) 16 Families Forward 17 Second Chance Orange County 18 CDBG-CV Homeless Prevention 19 CDBG-CV Low & Moderate-Income Service (Street Outreach) 20 CDBG-CV Administration Table 8 – Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City recognizes that special needs populations (i.e., seniors, disabled and households with extremely low-income) are more likely at risk to become homeless because they have limited incomes and have other issues that require housing and supportive services; therefore, the City considers supportive services a high priority for funding. Additionally, funding to provide housing and supportive services for those already homeless are considered a high need that merits funding. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 27 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Projects AP-38 Projects Summary Project Summary Information Table 9 – Project Summary 1 Project Name Housing Rehabilitation Target Area Citywide Goals Supported Owner Occupied Housing Rehabilitation Needs Addressed Owner Occupied Housing Funding HOME: $275,000 Description HOME funds for owner occupied housing rehabilitation loans and grants Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 11 housing units occupied by low and moderate-income homeowners Location Description Citywide Planned Activities Housing rehabilitation loans and grants to address deferred property improvements and building code deficiencies. 2 Project Name HOME Administration Target Area Citywide Goals Supported Program Administration Needs Addressed Program Administration City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 28 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Funding HOME: $45,422 Description HOME funds for program oversight and coordination. Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities NA Location Description 77 Fair Drive, Costa Mesa CA Planned Activities HOME program oversight and coordination. 3 Project Name Housing/CHDO Project Target Area Citywide Goals Supported Rental Housing Acquisition Needs Addressed Rental Housing Acquisition/Rehabilitation Funding HOME: $133,801 Description HOME and HOME-CHDO funds reserved for eligible housing project (to be determined) Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 1 housing unit - Goal entered for data input purposes only. Location Description TBD Planned Activities TBD City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 29 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 4 Project Name Housing Rehabilitation Administration Target Area Citywide Goals Supported Owner Occupied Housing Rehabilitation Needs Addressed Owner Occupied Housing Funding CDBG: $43,300 Description CDBG funds staff cost associated with the direct delivery of owner occupied housing rehabilitation loans and grants Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 11 housing units occupied by low and moderate-income homeowners Location Description Citywide Planned Activities Staff costs associated with deliver of housing rehabilitation loans and grants. 5 Project Name Special Housing Code Enforcement Target Area CDBG Eligible Areas Goals Supported Code Enforcement Needs Addressed Housing Code Enforcement Funding CDBG: $282,000 Description Enforcement of housing and building codes to address substandard conditions in residential neighborhoods within eligible Census Tracts and Block Groups Target Date 6/30/2020 City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 30 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Estimate the number and type of families that will benefit from the proposed activities 150 residential units Location Description Eligible Census Tracts and Block Groups Planned Activities Enforcement of housing and building codes. 6 Project Name City of Costa Mesa Senior Social Services Target Area Citywide Goals Supported Senior/Frail Elderly Services Needs Addressed Services for Elderly/Frail Elderly Funding CDBG: $20,000 Description Counseling and case management for seniors Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 250 Seniors Location Description Program available citywide but based out of the Costa Mesa Senior Center located at 695 W. 19th Street, Costa Mesa CA Planned Activities Counseling and case management for seniors. 7 Project Name Colette’s Children’s Home Target Area Citywide Goals Supported Transitional Housing City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 31 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Needs Addressed Homeless Services and Housing Funding CDBG: $15,175 Description Transitional housing and support services for homeless women and children. Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 13 homeless individuals Location Description Citywide Planned Activities Housing, food, case management, and life skills training for clients with the goal of assisting clients achieve long-term independence in stable permanent housing. 8 Project Name Community SeniorServ Meal Programs Target Area Citywide Goals Supported Senior/Frail Elderly Services Needs Addressed Services for Elderly/Frail Elderly Funding CDBG: $20,775 Description Funding for congregate meals at Costa Mesa Senior Center and home delivered meal Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 205 Seniors Location Description 695 W. 19th Street, Costa Mesa CA (Costa Mesa Senior Center) and City wide City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 32 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Planned Activities Weekday senior lunch program at Costa Mesa Senior Center and home delivered meals for homebound seniors. 9 Project Name Council on Aging Target Area Citywide Goals Supported Senior/Frail Elderly Services Needs Addressed Services for Low & Moderate Income Persons Funding CDBG: $15,270 Description Advocacy services to frail, elderly, dependent adults living in certified long-term care facilities Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 45 Seniors Location Description Citywide Planned Activities Long-term Care Ombudsman program will provide regular unannounced visits to long-term care facilities serving frail/elderly. 10 Project Name Fair Housing Foundation Target Area Citywide Goals Supported Low and Moderate Income Persons Needs Addressed Services for Low & Moderate Income Persons Funding CDBG: $15,000 Description Fair housing outreach, education and enforcement services Target Date 6/30/2020 City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 33 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Estimate the number and type of families that will benefit from the proposed activities 200 Individuals Location Description Citywide Planned Activities Community outreach, education and enforcement of fair housing laws. 11 Project Name Mercy House Homelessness Prevention Program Target Area Citywide Goals Supported Homelessness Prevention Needs Addressed Homeless Services and Housing Funding CDBG: $13,000 Description Financial assistance to prevent homelessness Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 8 at-risk of homelessness (prevention assistance) Location Description Citywide Planned Activities Homeless services including ongoing case management with a focus on housing stabilization, and short- term financial assistance for persons at risk of becoming homeless. 12 Project Name Mercy House Rapid Rehousing Program Target Area Citywide Goals Supported Rapid Rehousing City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 34 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Needs Addressed Homeless Services and Housing Funding CDBG: $13,000 Description Financial assistance for rapid rehousing for those already homeless Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 5 individuals that are homeless (rapid rehousing assistance) Location Description Citywide Planned Activities Homeless services including housing search and placement assistance, ongoing case management with a focus on housing stabilization for homeless. 13 Project Name Youth Employment Services Program Target Area Citywide Goals Supported Youth Services Needs Addressed Youth Services Funding CDBG: $15,180 Description Comprehensive youth job readiness program Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 250 young adults and teens Location Description 114 E. 19th Street Costa Mesa, CA City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 35 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Planned Activities Pre-employment skills training; finance and money management skills training; mock interviews; job search assistance; employer outreach; and follow-up. 14 Project Name CDBG Administration Target Area Citywide Goals Supported Program Administration Needs Addressed Program Administration Funding CDBG: $208,230 Description CDBG program oversight Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities NA Location Description 77 Fair Drive, Costa Mesa CA Planned Activities Program oversight and coordination. 15 Project Name Families Forward Housing Program Target Area Citywide Goals Supported Rapid Rehousing Needs Addressed Homeless Services and Housing Funding CDBG: $14,385 Description Funding to support program staff that provide financial assistance to rapidly rehouse homeless families with children Target Date 6/30/2020 City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 36 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Estimate the number and type of families that will benefit from the proposed activities 26 Homeless individuals Location Description Citywide Planned Activities Homeless services including housing search and placement assistance, ongoing case management with a focus on housing stabilization for homeless families with children. 16 Project Name Second Chance Orange County Target Area Citywide Goals Supported Low and Moderate Income Persons Needs Addressed Services for Low & Moderate Income Persons Funding CDBG: $14,385 Description Employment services for homeless or recently homeless adults Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 20 individuals Location Description Citywide Planned Activities Workforce counseling, mentoring, job coaching and job placement services. 17 Project Name Property Improvements - 3175 Airway (Yr. 2) Target Area Citywide Goals Supported Public Facility Improvements City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 37 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Needs Addressed Public Facility Funding CDBG: $351,450 Description Interior and exterior property improvements to re-purpose existing building into a 50-bed emergency shelter for homeless adult men and women Target Date 6/30/2020 Estimate the number and type of families that will benefit from the proposed activities 50 homeless individuals Location Description 3175 Airway Ave. Costa Mesa CA Planned Activities Interior and exterior property improvements to repurpose an existing building into a 50-bed emergency shelter for homeless adult men and women. Improvements include creation of separate sleeping areas for men and women, restroom/shower facilities, laundry and storage areas, kitchen and dining area, office space and warehouse area. 18 Project Name CDBG-CV Homeless Prevention Target Area Citywide Goals Supported Homelessness Prevention Needs Addressed Homeless Services and Housing Funding CDBG-CV Round 1: $387,321 CDBG-CV Round 3: $ 577,382 Description Financial assistance, case management, and other housing and social services interventions for households and individuals impacted by the Coronavirus Target Date 6/30/2023 City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 38 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Estimate the number and type of families that will benefit from the proposed activities 1,115 lower-income individuals Location Description Citywide Planned Activities Rental assistance and food assistance for households and individuals impacted by the Coronavirus 19 Project Name CDBG-CV Low & Moderate-Income Service (Street Outreach) Target Area Citywide Goals Supported Low and Moderate-Income Persons Needs Addressed Services for Low & Moderate-Income Persons Funding CDBG-CV Round 1: $181, 038 CDBG-CV Round 3: $ 357,191 Description Support services and other interventions to assist homeless individuals and households impacted by the Coronavirus Target Date 6/30/2023 Estimate the number and type of families that will benefit from the proposed activities 120 lower-income individuals Location Description Citywide Planned Activities Street outreach and motel/hotel vouchers to respond to increase street homelessness and to mitigate encampment locations, while providing linkages to available resources 20 Project Name CDBG-CV Administration Target Area Citywide City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 39 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Goals Supported Program Administration Needs Addressed Administration Funding CDBG-CV Round 1: $100,299 CDBG-CV Round 3: $233,643 Description CDBG-CV program oversight and coordination Target Date 6/30/2023 Estimate the number and type of families that will benefit from the proposed activities Not applicable Location Description 77 Fair Drive, Costa Mesa CA – City Hall Planned Activities CDBG-CV program oversight and coordination including management of public service grants and preparation of required applications and reports City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 40 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Activities slated for CDBG-funding during FY 2019-20 will be available on a citywide basis to income eligible individuals (i.e., limited clientele) and in areas of the City with higher percentages of lower income residents. The map of the City’s CDBG Eligible Areas provides a view of the areas where CDBG resources can be focused via “area wide” activities (see Attachment 3). Table 10 indicates the majority of the City’s CDBG funds will be focused on a citywide basis. All HOME funds will be available on a Citywide basis (not included in Table 10). Geographic Distribution Target Area Percentage of Funds Citywide 73 CDBG Eligible Areas 27 Table 10 - Geographic Distribution Rationale for the priorities for allocating investments geographically HUD funding will primarily be allocated on a citywide basis as the City’s primary intent is to serve eligible households that are in need of housing and services regardless of where they live in the City. As the City’s CDBG-eligible areas tend to be older sections of the City, area wide activities will help to improve and sustain these neighborhoods and encourage property owners to also invest in their properties. Discussion As indicated above, CDBG and HOME funds will be focused on programs that serve eligible residents regardless of where they live. It is also expected that the City’s investment in neighborhoods will create a synergy whereby other property owners will also invest in their home and community. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 41 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction During FY 2019-20, proposed activities to be funded with CDBG and HOME funds will meet the housing needs of the following households. One Year Goals for the Number of Households to be Supported Homeless 0 Non-Homeless 12 Special-Needs 0 Total 12 Table 11 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 12 Acquisition of Existing Units 0 Total 12 Table 12 - One Year Goals for Affordable Housing by Support Type Discussion The City will focus 2019-2020 HOME funds on the rehabilitation of existing owner-occupied housing units. While not the primary focus of the program, some special-needs households (senior and disabled) may be assisted during the year via the City’s Owner-Occupied Housing Rehabilitation Program. FY 2019-20 HOME CHDO funds are included in the Annual Action Plan; however, no specific CHDO project has been identified at this time. CDBG funding has also been allocated to support rapid rehousing (31 individuals) and homelessness prevention (eight individuals) assistance. It is anticipated that OCHA will continue to provide rental assistance to approximately 580 Costa Mesa renter households. Planned shelter beds to be developed during the program year are not included in this discussion since the beds are incorporated into the planned accomplishments for FY 2018-19. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 42 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-60 Public Housing – 91.220(h) Introduction Costa Mesa does not own or manage public housing. Actions planned during the next year to address the needs to public housing Not applicable. Actions to encourage public housing residents to become more involved in management and participate in homeownership Not applicable. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable. Discussion Not applicable. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 43 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction As outlined in the 2015-19 Consolidated Plan, the City’s homeless strategy is to support programs that prevent homelessness by providing safety net services. These programs will help households, especially extremely low-income households, maximize the amount of income they have available for housing. Additionally, both HUD and City resources will be allocated to provide access to a continuum of services and housing to assist those already homeless and that have strong ties to the community. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs Approximately $1,000,000 in General Fund and Housing Authority (former Redevelopment Agency) resources will be allocated to provide direct outreach services for chronic and situational homeless. Services include engagement, assessment and linkages to appropriate services and housing. Services will be provided by City-paid social workers and community volunteers. Coordination of services will also be provided by the City. No FY 2019-20 CDBG funds will be allocated to provide similar outreach services. Addressing the emergency shelter and transitional housing needs of homeless persons There is a shortage of year-round emergency shelter beds in the County. In March 2019, the City Council authorized the purchase of a property for the purpose of creating a 50-bed emergency shelter for single, adult homeless men and women. Non-HUD resources were utilized for this purchase. The City will amend two prior year Action Plans (FY 2016-2017 and FY 2018-2019) to reallocate $975,000 in CDBG funds to retrofit the building into the shelter. Improvements will include construction of dormitories, shower/bath facilities, food service and dining areas, storage, and office space. FY 2019-20 CDBG funds area also allocated to this project to augment prior year funds in support of building improvements. Additionally, $15,175 in FY 2019-20 CDBG funding is allocated for transitional housing and support services offered by Colette’s Children’s Home. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 44 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 CDBG funding will be allocated for rapid rehousing. This “housing first” program model takes a homeless household and places them directly into an affordable housing unit and provides appropriate supportive services to establish housing stability. For FY 2019-20, $27,385 in CDBG funding will be allocated to Families Forward and Mercy House to rapidly rehouse 31 individuals. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. The City continues to support the regional CoC’s efforts to implement Orange County’s Ten-year Plan to End Homelessness. This plan includes a discharge plan for the individuals leaving institutions such as hospitals and jails. The City’s Homeless Outreach Program staff will continue to work closely with individuals already homeless to assess their specific needs and then link them to appropriate support services, housing, and public assistance programs. For FY 2019-20, $13,000 in CDBG funding allocated to Mercy House will be used to provide homelessness prevention assistance to assist at-risk households - these funds will be used to assist an estimated eight individuals. Additionally, Second Chance Orange County will provide job coaching and placement services for homeless and former homeless individuals with the goal of increasing self-sufficiency. Discussion The City of Costa Mesa has a well-developed strategy to address homelessness in the community. This strategy includes outreach and assessment services for homeless and chronic homeless individuals. Program staff will attempt to link individuals to appropriate housing, support services, and public- assistance programs (e.g., VA benefits, SSI). To undertake this effort, the City partners with local nonprofit service providers and community-based volunteers. Based on assessments, individuals or households are referred to appropriate housing/service providers. City staff will coordinate the delivery of services and housing with providers in an effort to reduce the number of homeless individuals in the community. Both HUD and City funds will be used to carry out these activities including emergency shelter, transitional housing, and rapid rehousing. October 2020 CDBG-CV Amendment The City will allocate CDBG-CV to provide food and direct financial assistance to prevent the loss of housing for income-eligible households due to financial hardships caused by the Coronavirus. Additionally, funds will be used to help prevent the spread of the Coronavirus among homeless individuals by providing access to safe and sanitary housing, and other supportive services. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 45 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-75 Barriers to affordable housing – 91.220(j) Introduction A strategy to address barriers to affordable housing and actions to overcome these barriers is provided in the City's Housing Element and Consolidated Plan. The City will continue efforts to address these barriers during the 2019-2020 Program Year. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment As outlined in the City’s 2013-2021 Housing Element and the Consolidated Plan, the following actions will be implemented to remove or ameliorate barriers to affordable housing:  The City will encourage the joint processing of related applications for a single project. Such procedures save time, money and effort for both the public and private sector.  The City provides fee credits for existing development against new development. Fee credits are available for park fees, sanitation district fees, and traffic impact fees. Park fees and traffic impact fees can also be deferred until the issuance of Certificates of Occupancy.  The City will provide incentives (such as density bonus and deferred impact fees) to developers that agree to reserve a portion of project units for lower income households (including extremely low-income), moderate-income households (common interest developments only), or for seniors and the disabled.  The City will maintain an inventory of vacant and underutilized sites and provide this inventory to interested developers.  The City will continue to promote mixed-use development specific plan areas. The City will respond to market conditions and offer appropriate incentives through the Mixed Use Overlay zone. Incentives include; reduced parking standards, reduced open space, increased densities, increased height limit, increased lot coverage; reduced setbacks. If available, subsidies may also be provided for qualified affordable housing projects (e.g., HOME funds). There is no local tax. Discussion The City’s 2013-2021 Housing Element outlines the City’s plan to address barriers to affordable housing. The Consolidated Plan mirrors the Housing Element, which is to provide incentives to developers willing to dedicate developed units for lower income households. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 46 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 AP-85 Other Actions – 91.220(k) Introduction As outlined in the City's Consolidated Plan, the City will implement the following actions during FY 2019- 20 to address the "Other Actions" or sub-strategies identified in the Consolidated Plan. Actions planned to address obstacles to meeting underserved needs The City will allocate a portion of its CDBG and HOME funds for activities that address the housing and service needs of the elderly and lower-income households. Additionally, the City will encourage and support OCHA’s efforts to obtain additional rental assistance funding especially for senior and low- income households. OCHA reports that as of January 2019, 588 Costa Mesa households received rental housing assistance. (This total includes 136 disabled households, 389 elderly households, and 63 families. Among these populations are 12 homeless households and 16 Veterans). The City’s housing rehabilitation program will also assist elderly homeowners undertake improvement of respective residences to address specific household needs. Actions planned to foster and maintain affordable housing The City of Costa Mesa has identified the actions it will undertake during FY 2019-20 to foster and maintain affordable housing. The Annual Action Plan identified programs such as Owner-Occupied Housing Rehabilitation assistance as the means to maintain and improve housing currently available to by low- and moderate-income residents. By providing deferred payment loans and grants, lower income households are able to rehabilitate their residence to meet basic housing quality standards and incur zero or minimal additional housing costs. An estimated 11 housing units will be assisted with HOME funds during FY 2019-20. Additionally, the City has allocated HOME CHDO funds to accommodate a potential housing project. Actions planned to reduce lead-based paint hazards Based on past housing rehabilitation program statistics, only a small percentage of housing units that are rehabilitated with City resources contain lead-paint hazards. To ensure compliance with all current HUD lead-based paint regulations, all housing units, that were constructed before 1978, that are rehabbed with City resources, will be tested for lead-paint hazards. If needed, additional grant funds can be allocated to a project to ensure all lead-based hazards are mitigated. Actions planned to reduce the number of poverty-level families The City will assist programs and services that combat poverty. During FY 2019-20 the City will fund the following activities to support implementation of this strategy: City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 47 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20  Implement housing programs (including housing rehabilitation assistance) for lower income, senior and disabled homeowners.  Support rental assistance programs provided by the Orange County Housing Authority for very low-income renters. The City will also explore the use of HOME funds for rental housing opportunities.  Support services for individuals presently housed but at risk of losing their residence. Also, assist those already homeless in need of shelter and continue to coordinate the delivery of services with nonprofit partners.  Support safety net public services programs to improve the quality of life for seniors, youth, the disabled, homeless, and other populations that may be severely impacted by the cost of living in the region. October 2020 CDBG-CV Amendment  The City will allocate CDBG-CV to provide direct assistance to prevent food insecurity, the loss of housing, and other interventions for lower-income households and individuals impacted by the Coronavirus. Actions planned to develop institutional structure The City has made an effort to develop an institutional structure that will help identify and access resources to improve the community and assist those most in need. The City will continue to work with nonprofit and public entities to deliver public services. As a member of the Orange County Continuum of Care Community Forum, the City will provide critical information to the County of Orange for preparation of the County’s Continuum of Care Homeless Assistance grant applications. Costa Mesa will also continue to provide critical information regarding mainstream funds the City will make available to serve the homeless, and assist with identifying and prioritizing gaps and needs in the regional system of care. The City will continue to provide input on the development of the County’s ten-year plan to end homeless, and will also participate in the Orange County homeless services Coordinated Entry Process in an effort to remove barriers to housing for at-risk and chronically homeless individuals. Costa Mesa will continue to assist the Orange County Housing Authority implement its Five-year PHA Plan. Finally, the City will continue to meet with other Orange County HUD grantees to discuss common program issues and to coordinate regional efforts and planning. Actions planned to enhance coordination between public and private housing and social service agencies The City of Costa Mesa does not operate public housing. The Orange County Housing Authority provides rental assistance in the community. Federal legislation requires that the Housing Authority prepare five- year and one-year plans that highlight its mission, goals and objectives as it relates to public and assisted housing programs. The City will review the Authority’s plans and provide OCHA the opportunity to review and consult with the City regarding its Consolidated Plan/Annual Action Plan. The goal of this cross-consultation is to provide consistent and coordinated housing services for City residents. Ongoing City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 48 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 consultation with local nonprofits also assists the City to coordinate the efficient and effective use of limited federal resources. Discussion HUD regulations require that the City prepare an Analysis of Impediments to Fair Housing choice (Al) every five years. In addition to identifying impediments, a strategy to overcome barriers must be developed and implemented. Accomplishments are reported annually. In May 2015, the City of Costa Mesa and 15 other Orange County jurisdictions combined resources to prepare an AI that is compliant with existing guidelines. This multi-jurisdictional AI evaluates demographic data, past fair housing enforcement activity for each partner community, region and city- specific mortgage lender data, and existing housing and land use public policies. Based on an analysis of this data, and the input of residents, a list of impediments to fair housing choice for the 16-city region has been developed. A corresponding set of action steps to ameliorate these barriers has also been prepared. Impediments are summarized in Attachment 4 – a copy of the AI is posted on the City’s website. NOTE: not all of the impediments identified in the AI may be present in Costa Mesa. The action steps the City will undertake during FY 2019-20 are also listed in Attachment 4. City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 49 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) Introduction Each HUD program that is covered by the Consolidated Plan regulations must address certain program specific requirements. Below are the program requirements for the CDBG and HOME programs. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0 5. The amount of income from float-funded activities 0 Total Program Income 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% City of Costa Mesa 2019 Annual Action Plan Substantial Amendment 50 OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 10-12-20 HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City is not proposing to utilize HOME funds in a form that is not delineated in Section 92.205. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: The City has not, and does not plan to utilized HOME funds for homebuyer assistance; however, if funds are redirected to such a program, steps will be taken to ensure program guidelines comply with applicable resale and recapture regulations. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: If a CHDO project comes to fruition, the applicable loan agreement(s) will be prepared to comply with the resale/recapture requirements delineated in 24 CFR 92.254. 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: If a CHDO project comes to fruition, program staff will ensure that all applicable program policies are followed including establish refinancing guidelines. Discussion The City will meet the CDBG Program’s overall 70% benefit for low and moderate-income requirement during the one-year 2019 Program Year. With respect to HOME affordable homeownership limits for the area (i.e., 95 percent of the median area purchase price as set forth in 24 CFR 92.254(a)(2)(iii)), the City will utilize HUD’s HOME affordable homeownership limits for its HOME-funded mobile home rehabilitation program. For single-family, owner-occupied housing rehabilitation, the City conducted a survey in order to establish a maximum property value that is reflective of the local market median home purchase prices, which exceed HUD’s published limit. This information is provided as Attachment 5.