Title
Approval of a Substantial Amendment to the 2023-27 Community Development Block Grant Consolidated Plan
Recommended Action
Committee Recommendation:
The Community Livability and Public Safety Committee recommend approval of the Substantial Amendment to the 2023-27 Community Development Block Grant Consolidated Plan.
City Manager Recommendation:
Move to approve the Substantial Amendment to the 2023-27 Community Development Block Grant Consolidated Plan.
Report
Issue:
Whether to approve the Substantial Amendment to the 2023-27 Community Development Block Grant Consolidated Plan.
Staff Contact:
Anastasia Everett, Senior Housing Program Specialist, Community Planning & Economic Development, 360.753.8277
Presenter(s):
None - Consent calendar item.
Background and Analysis:
On May 27, staff presented the proposed Substantial Amendment to the Community Livability and Public Safety Committee. The Committee voted to recommend the dissolution of the Revolving Loan Fund and future projects to the Rental Rehabilitation Program due to constraints in staff capacity and low program impact. Since its establishment in 2021, two projects have been completed, and one is underway.
The project currently underway is the rehabilitation of a 12-unit multifamily property rented at affordable rates to tenants, most of whose income is at least below 80% area median income. Funding already allocated to the project currently underway will be retained for the completion of that project.
Dissolving the rental rehabilitation program will help the City ensure timely spend down of Community Development Block Grant funds. Staff have consulted with the Department of Housing and Urban Development on the process for dissolving the loan fund and are following the processes provided. Funds formerly routed to the Revolving Loan Fund are proposed to be reintegrated with Program Income to be spent on activities identified as Contingency Projects in each Annual Action Plan process.
On June 23, the City Council held a public hearing on the proposed amendment, and the public comment period was open from June 8 to July 9.
Climate Analysis:
Dissolving the Revolving Loan Fund will make program income available for contingency projects outlined in each year’s Annual Action Plan. Examples of activities funded include Energize Thurston and weatherization completed by critical home repair programs.
Equity Analysis:
CDBG funds must primarily benefit 80% or under Area Median Income (AMI) persons. There are statistically major disparities in income that are tied to marginalized groups in our community. More information about disparities can be found in the City’s Assessment of Fair Housing.
Neighborhood/Community Interests (if known):
CDBG funding is used to support Olympia residents with incomes at or below 80% of the Area Median Income. Supporting low- and 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.
Financial Impact:
The proposed reallocation of unspent Revolving Loan Funds is $35,176. The CDBG program can anticipate collecting between $50,000 and $250,000 of Program Income during each Program Year, increasing the funding available for contingency projects identified in the Annual Action Plan.
Options:
1. Move to approve the Substantial Amendment to the 2023-27 Community Development Block Grant Consolidated Plan.
2. Move to approve, with amendments, the Substantial Amendment to the 2023-27 Community Development Block Grant Consolidated Plan.
3. Do not approve the Substantial Amendment and direct staff to continue the Revolving Loan Fund.
Attachments:
Substantial Amendment to the 2023-27 Consolidated Plan