Title
Community Development Block Grant Program Year 2023 Projects - Briefing
Recommended Action
Information only - no action requested.
Report
Issue:
Whether to present on the proposed Program Year 2023 proposed projects for the Community Development Block Grant Annual Action Plan.
Staff Contact:
Anastasia Everett, CDBG Program Specialist, 360.233.6197
Presenter(s):
Anastasia Everett, CDBG Program Specialist, 360.233.6197
Background and Analysis:
The City of Olympia is an entitlement community for the U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG) Program. The CDBG Program supports community development activities to build stronger and more resilient communities. To support community development, activities are identified through an ongoing process. Activities may address needs such as infrastructure, economic development projects, public facilities installation, community centers, housing rehabilitation, public services, clearance/acquisition, microenterprise assistance, code enforcement, homeowner assistance, etc.
CDBG is used to develop viable communities by providing decent housing, a suitable living environment and opportunities to expand economic opportunities, principally for low- and moderate-income persons. All funded CDBG activities must be eligible under 24 CFR part 570 and must meet a National Objective. The National Objectives are a benefit to low- and moderate-income persons on a job basis, housing basis, area basis or limited clientele basis. Slum/blight removal and Urgent Need are also National Objectives (capped to 30% allocation over a three-year certification period).
The City is currently in the process of developing the Program Year 2023 (PY23 September 1, 2023 - August 31, 2024) Annual Action Plan (AAP). The AAP serves as the blueprint for how Olympia will invest CDBG funds to address high-priority local needs.
The allocation for the City of Olympia PY23 CDBG award is $362,353. Staff released an RFP in Spring 2023 to collect applications for eligible CDBG projects. Staff recommendations for projects are listed below:
1. Rebuilding Together Thurston County - $75,000
a. Critical Home Repair
2. South Puget Sound Habitat for Humanity - $77,500
a. Critical Home Repair
3. Enterprise for Equity - $77,500
a. Microenterprise Assistance
4. Downtown Ambassadors - $60,000
a. Homelessness Outreach - Public Service
5. Program and Administrative Costs (PAC) - $72,353
a. Staff costs for maintaining a compliant CDBG program
The draft PY23 CDBG AAP will be presented to the Community Livability and Public Safety Committee on April 23, 2023. The public hearing for the PY23 is scheduled at City Council on June 6, 2023. Consideration for City Council approval is scheduled for June 13, 2023. A 30-day public comment period for the AAP will be opened May 9 and will close June 9, 2023.
Climate Analysis:
CDBG is a flexible grant that can be used to support the City’s climate goals. In 1980, the U.S. Congress gave the CDBG program a mandate to support energy efficiency and renewable energy technologies in property rehabilitation.
Typical energy efficiency activities funded by CDBG include design features to public facilities improvements promoting energy efficiency. Activities may also include public energy conservation services, assistance to neighborhood-based organizations undertaking energy conservation projects, and the development of energy use strategies to achieve maximum energy efficiency.
The City of Olympia has invested a significant amount of CDBG funding into energy efficiency projects in the 2021 and 2022 program years. Examples of prior projects include solar installation, home weatherization, home electrification, and energy efficient heat pump installations for low- to moderate-income households.
City staff are exploring how to tie in energy efficiency upgrades or certain requirements to the Revolving Loan Fund (RLF), the City’s rental rehabilitation program for low-income rental housing.
Equity Analysis:
CDBG funds must primarily benefit 80% or under Area Median Income (AMI) persons. There are statistically major disparities in income that tie to marginalized groups in our community. In the City of Olympia, the total population determined to be below the poverty line is 7,489 individuals out of our total population of 51,076. Poverty is more prevalent in some races and ethnicities in Thurston County. 15.5% of Black or African American residents are below the poverty level, compared to 9.1% white residents.
CDBG funding can be used in a variety of activities to improve accessibility for residents with disabilities in our community. Eligible activities include reconstruction of sidewalks to install ramps and rehabilitation of homes or public facilities to include the removal of architectural barriers to accessibility. Examples of projects funded in program years 2021 and 2022 include critical home repair by our subrecipient, Rebuilding Together Thurston County. Critical home repair projects funded include installation of handrails, wheelchair ramps and safety equipment in the home.
CDBG funds can also be used to provide energy efficiency upgrades to low- and moderate-income persons in the community, which for many years have been inaccessible to many families as the cost of energy improvements can be significantly higher than what is affordable. This use of funds helps close the disparity in who is able to benefit from high efficiency heat pumps or solar installation. Energy efficiency upgrades also often lower the cost of electricity for the homeowner or tenant, which reduces the utility burden on households.
Neighborhood/Community Interests (if known):
CDBG funding is used to support Olympia residents at or below 80% AMI. CDBG funding priorities align with the 5-year HUD Consolidated Plan, and more specific goals are targeted annually in the AAP. Supporting low-moderate income Olympia residents is a high priority for the community, and CDBG funded projects help meet many of the City’s goals outlined in the One Community Plan. CDBG funding can benefit low-moderate income residents on an area basis (such as neighborhood improvements), limited clientele basis, or provide housing and jobs benefits.
Options:
None - no action requested.
Financial Impact:
The CDBG PY23 award is $362,353.
Attachments:
None - staff will be presenting the draft AAP to the Community Livability and Public Safety Committee on April 26, 2023.