TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Kristin Retherford, Community Planning and Development Director
SUBJECT:
title
2024 Annual Action Plan (AAP) for CDBG and HOME Funds and 2022 Consolidated Annual Performance and Evaluation Report (CAPER)
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Safe and Healthy Community; Welcoming and Livable Community.
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SUMMARY:
summary
The City of Salem annually receives HOME Investment Partnership Program (HOME) and Community Development Block Grant (CDBG) program funds from the Department of Housing and Urban Development (HUD). The Annual Action Plan (AAP) is the annual implementation of a five-year Consolidated Plan (ConPlan) that specifically describes how Salem will spend these federal resources for activities serving low-and moderate-income households, the houseless, and persons with special needs. The ConPlan <https://www.cityofsalem.net/citydocuments/federal-programs-consolidated-plan-2020-2024.pdf> was adopted June 2020 and spans the years 2020-2024. The Consolidated Annual Performance and Evaluation Report (CAPER) is the annual report that describes how grant funds were expended from July 1, 2022, to June 30, 2023, to meet the objectives of the ConPlan.
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ISSUE:
Shall City Council adopt the 2024 AAP and the 2022 CAPER and direct staff to submit the required forms to the U.S. Department of Housing and Urban Development?
RECOMMENDATION:
recommendation
Adopt the 2024 Action Plan (AAP) and 2022 Consolidated Annual Performance and Evaluation Report (CAPER) and direct staff to submit the required forms to the U.S. Department of Housing and Urban Development.
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FACTS AND FINDINGS:
Opportunity for Citizen Involvement
HUD requires a public comment period prior to a public hearing and City Council adoption of the AAP and CAPER. The City published a notice of the hearing in the Statesman Journal on March 21, 2024. The comment period ends on April 18, 2024. Any comments received will be acknowledged at the hearing. The AAP and CAPER were available on the City of Salem website and distributed via email to community stakeholders. Printed copies were available at the Salem Public Library, 50 + Center and at the Community Planning and Development - Urban Development office.
Plan Highlights
Applications for CDBG and HOME projects were solicited by the City during the period of October 16, 2023 - November 30, 2023. The City received 15 project applications, and all were reviewed for viability and conformance to City goals and HUD national objectives. The recommended projects meet HUD guidelines and address goals in the City’s Strategic Plan, the ConPlan, and the Mid-Willamette Homeless Initiative.
All award amounts in the AAP are based upon estimates of eventual funding. The City’s notice from HUD of its entitlement grants is not available as of the date of publication, and awards are subject to change.
2024 Annual Action Plan (AAP) Funding
Goal 1: End Homelessness
Case management for homeless families and individuals.
• Center for Hope and Safety- Case Management $ 100,000
• St. Francis Shelter- Case Management $ 85,000
• Northwest Human Services- Case Management $ 38,160
Total $223,160
Goal 2: Expand Affordable Housing
CHDO operating costs, rehabilitation of transitional shelter and new construction of multi-family affordable units.
• WestCare Oregon Inc.- Facility Rehabilitation Needs $400,000
• Micronesian Islander Community- Voyagers Village Apts. $ 600,000
o New Construction: 41 Rental Units
• DevNW - Operating costs $ 50,000
o Community Housing Development Organization Capacity Building
• City of Salem - Land Acquisition and Infrastructure $ 394,480
Total $ 1,444,480
Goal 3: Promote Economic Development:
Building rehabilitation and safety upgrades.
• Garten Services, Inc. $34,392
o Fire Door and Hydrant Upgrade
Total $ 34,392
Administration (Including Project Delivery) $ 442,738
Total $ 2,114,770
2022 CAPER Report Highlights
The 2022 Program Year CAPER shows results of completed activities during the period of July 1, 2022 - June 30, 2023. These activities addressed priorities identified in the 2020-2024 ConPlan.
This CAPER is the third year of the 2020-2024 Housing and Community Development ConPlan; the City is on schedule to meet anticipated goals in some areas. The building supply chain disruption, material cost increases, and ongoing shortage of trade workers affected many of the construction projects. Some programs are ongoing and are not counted in this CAPER assessment.
The City tracks the performance of all projects and programs that received an allocation of funding throughout the Program Year. In addition to tracking the outcomes of these projects and programs, HUD requires the City to monitor all expenditures.
The 2022 HOME and CDBG combined funding supported $601,086 in expenditures to address homelessness, expand affordable housing, and administration activities identified in the 2022 AAP.
Goal 1: Address Homelessness
Programs designed to prevent and/or end homelessness were implemented. The programs included case management and tenant based rental assistance. Completed projects include Meals on Wheels (warm nutritious meals delivered to senior citizens), Marion-Polk Food Share Youth Farm, both operated by Marion-Polk Food Share, Mid-Willamette Valley Community Action Agency ARCHES-Tenant-Based Rental Assistance (TBRA), and St. Francis Shelter-TBRA. Total clients served under this goal for the reporting period was 739.
Goal 2: Expand Affordable Housing
Permanent housing projects currently in process to be completed include Yaquina Hall, Southfair Apartments, Evergreen (Cottage Street) Apartments, Mahonia, Fisher/Sizemore Apartments, and the conclusion of work on the MacLeay Road Homeownership Subdivision. When complete, the projects will result in more than 200 new units. Transitional housing projects nearing completion include Seed of Faith Ministries facility upgrade.
Goal 3: Neighborhood Revitalization
No projects were funded for this component during the grant reporting period.
Goal 4: Promote Economic Development
No projects were funded for this component during the grant reporting period.
Project Administration, which includes monitoring, management, and mandatory Fair Housing activities are City obligations that do not fall within the identified goals for reporting purposes and thus are included as a separate line item within the expenditures.
BACKGROUND:
A public notice ran for 30 days, per HUD requirement. The City must submit an AAP to receive CDBG and HOME entitlement funds from the U. S. Department of Housing and Urban Development. (Attachment 1). The AAP identifies resources and proposed expenditures of the CDBG and HOME funds administered by HUD. (Attachment 2) The CAPER shows activities undertaken during the period of July 1, 2022 - June 30, 2023. These activities addressed priorities identified in the 2020-2024 Housing and Community Development Consolidated Plan.
Tiffany Ottis
Federal Program Manager
Attachments:
1. Draft 2024 Annual Action Plan (AAP)
2. Draft 2022 Consolidated Annual Performance and Evaluation Report (CAPER)