Title
Approval of the Community Development Block Grant (CDBG) Program Year 2023 Annual Report
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Program Year 2023 (9/1/2023 - 8/31/2024) CDBG Consolidated Annual Performance and Evaluation Report (CAPER).
Report
Issue:
Whether to approve the Program Year 2023 (9/1/2023 - 8/31/2024) CDBG Consolidated Annual Performance and Evaluation Report (CAPER).
Staff Contact:
Anastasia Everett, CDBG Program Manager, Office of Community Vitality
Presenter(s):
Anastasia Everett, CDBG Program Manager
Background and Analysis:
Each year the City reports on the performance of the CDBG Program through the Consolidated Annual Performance & Evaluation Report (CAPER). This report is presented in a short “Community Summary” version and the full CAPER format that will ultimately be submitted to the federal Department of Housing and Urban Development (HUD). This CAPER details the performance of the City’s CDBG Program for the Program Year 2023 (September 1, 2023 - August 31, 2024), with the specific accomplishments and expenses outlined.
During Program Year 2023 (PY23), the City supported four external subrecipients as well as the City’s Community Court program. PY23 subrecipients were: Enterprise for Equity, Rebuilding Together Thurston County, South Puget Sound Habitat for Humanity and Homes First.
The City’s CDBG funds rehabilitated 16 units during PY23. Three rental units had an energy-efficient heat pump installation through the Homes First Electrification program. The City’s Rental Rehabilitation Program also is underway with the first project since the program has started, the rehabilitation of an unsafe and structurally degraded stairway to the tenant’s unit. The rental rehabilitation project also included the installation of an energy-efficient ductless heat pump through the Energize Olympia campaign.
Rebuilding Together Thurston County rehabilitated six units in PY23, fully drawing down their award. South Puget Sound Habitat for Humanity also rehabilitated six units in PY23 and has a portion of their award remaining, the City expects another two units to be rehabilitated with PY23 funding.
Enterprise for Equity provided technical assistance to small businesses and supported 24 businesses with City CDBG funding through the period of performance. Community Court also supported 17 beneficiaries during the period of performance, expending only a small portion of their $60,000 award. The remainder of the award is expected to be drawn down in 2025, providing new services to community members participating in the Community Court program.
The public comment period for the CAPER began on Friday, November 1st and closed Monday, November 18th.
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 continues to invest a significant amount of CDBG funding into energy efficiency projects. This program year, the City awarded additional funding funding for the PY22 project Homes First Electrification. This project replaces gas heating in rental homes owned by Homes First and replaces them with energy efficient electric heat pumps. Examples of prior projects include solar installation, home weatherization and home electrification for low- to moderate-income households.
CDBG staff have worked collaboratively with the Climate program to provide fully subsidized heat pump installations for low- and moderate-income households through the Energize Olympia campaign in 2023 and 2024. Staff will continue to explore collaborative opportunities between the programs.
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 2022 and 2023 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 can 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.
Financial Impact:
The City’s PY23 entitlement award was $362,353.00. The City expended $478,815.58 during Program Year 2023, which included spenddown of prior year funds and finishing activities from PY22. The City has also begun spenddown of the Rental Rehabilitation Revolving Loan Fund with the first $50,000 project contract underway.
Options:
1. Approve the PY23 CAPER and direct staff to submit to HUD
2. Amend the CAPER and direct staff to submit to HUD
3. Do not approve the the PY23 CAPER, risk noncompliance with HUD reporting requirements.
Attachments:
PY23 CAPER