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PUBLIC HEARING REGARDING AMENDMENT NUMBER THREE TO THE FYE20 FIFTH YEAR ACTION PLAN FOR THE 45TH YEAR NORMAN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ADDING $737,568 AWARDED TO THE CITY OF NORMAN THROUGH THE CORONA VIRUS AID, RELIEF, AND ECONOMIC SECURITY (CARES) ACT TO BE SUBMITTED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND ADOPTION OF RESOLUTION R-2021-82 APPROPRIATING FUNDS.
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BACKGROUND: The 2014-2019 Consolidated Plan approved in 2014 is a comprehensive planning approach to identify and address the needs of low-to-moderate income residents of Norman. Incorporated in the plan was a community profile of needs, goals and objectives related to housing, homeless persons, community development (including facilities, infrastructure, public services, and economic development), public and assisted housing needs, and other issues including fair housing and lead-based paint; and a strategic plan to address those needs.
The Fifth Year Action Plan for the 45th Year Community Development Block Grant (CDBG) Program and the 2019 HOME Partnership Program (City of Norman FY 2019-2020) were approved by the Norman City Council on May 14, 2019 and the U.S. Department of Housing and Urban Development (HUD) on June 18, 2019. All activities included in the proposed use of funds referenced the Five-Year Consolidated Plan Objectives and expected performance outcomes, and totaled $850,844.
To assist in addressing the current financial impact associated with the COVID-19 crisis to households in Norman, the CARES Act included funding to be distributed utilizing the existing CDBG formula to all Entitlement Communities and States. The City of Norman was awarded a total of $1,273,256 in two allocations. The Department of Housing and Urban Development (HUD) has encouraged entitlement communities such as Norman to simply amend their current Action Plan to allow for expedient use of the funds. With the legislation that was passed, the reduction of the usual 30-day Public Comment Period has been reduced to 5 days. The amendment to the Citizen Participation Plan is also attached.
Discussion has been held with the CDBG Policy Committee, United Way of Norman, Food and Shelter, Inc. and Salvation Army, among others, pertaining to how the CDBG Program can be utilized to assist in meeting the demand for the dramatic increase in the number of families that are looking for financial assistance for the payment of rent and utilities. This is a crisis that all expect to increase as many remain out of work for the immediate future.
At the April 14, 2020 City Council Meeting, Amendment One to the 45th Year Community Development Block Grant Program (CDBG) was approved, which reprogrammed ($75,000) identified within the Fifth Year Action Plan. These funds will be utilized for a program targeting households who, as a result of this crisis, have seen a substantial reduction of their employment income. The funds will be utilized for the payment of rent and/or utilities for the affected households. Amendment Two (CDBG-CV-1), approved on May 12, 2020, expanded this program and provide additional resources for non-profits that distribute food to the community.
Although not every need can be addressed with these funds, the City of Norman along with our community service providers have developed a plan that prioritizes the unique needs of low-and moderate-income persons, and in addition, homeless individuals, being affected by the crisis. As a result of these discussions, the City of Norman identified the following needs to be addressed with the CDBG-CV3 award.
DISCUSSION: The CDBG Program requires that each grantee adopt and follow a Citizen Participation Plan for the proposal and implementation of all activities. The Plan that is adopted by the City of Norman requires that a Substantial Amendment to an Action Plan is required if an activity is proposed that was not previously approved by HUD or if there is an overall change in funding by addition or reduction of an award. That is the case in this situation. Once approved by Council, this request will be forwarded to HUD for approval. The CDBG Policy Committee unanimously approved Substantial Amendment #3 to the Fifth Year Action Plan during a virtual meeting held on January 6, 2021.
This is a multi-year award and the grant requires that 80% of funding be expended within three years. The staff positions are fully funded until June 30, 2023. There is no match required and the grant will be administered on a reimbursement basis the same as all CDBG funding. The funding recommendations are as follows:
• Administration $30,000
The administration of the grant includes overall administration and compliance monitoring for the programs.
• Rent Assistance $401,418
The City of Norman will provide a rent/utility assistance program for Norman households with annual income less than 80% of area median income that have been directly financially affected by the COVID-19 Crisis. Income verification will be documented as well as the household size, race/ethnicity of the household, and head of household. A duplication of benefits policy and procedure will be implemented to insure that appropriate assistance is being administered. Participants of the program will receive assistance no more than three months; current month and up to two months in arrears. This program change was requested by HUD to focus efforts on the prevention of evictions for past due rent.
• Warming Shelter Rent $27,000
Funding included within the Emergency Solutions Grant-CR which was awarded to the City of Norman for the operation of an emergency warming shelter was not sufficient to cover the one-year lease for the structure.
• Street Outreach Case Manager $114,575
Salary and benefits for one full time position to assist with connecting individuals experiencing homelessness to services in Cleveland County. The primary goal is to identify unsheltered individuals through direct street outreach activities and through community referrals from concerned citizens, local businesses, hospitals, law enforcement, and other social service agencies. This person will work to identify highly vulnerable people experiencing homelessness, administer assessment tools, facilitate placement into emergency shelter and make connections to social services and pathways to permanent housing. Funding includes in addition to two years of salary and benefits, required equipment and supplies. This position is fully funded thru FYE23 with the CDBG-CV program and will be advertised as a grant funded position for the period indicated, permanent employment is not guaranteed.
• Homeless Housing Navigator $114,575
Salary and benefits for one full time position to provide service activities, community based case management, community based resource referrals and advocacy efforts for clients who are currently experiencing unsheltered homelessness. The Housing Navigator works closely with prospective property-owners and managers to promote permanent housing opportunities for homeless individuals and families. The Housing Navigator will accompany the Street Outreach Case Manager and other community outreach teams in an effort to help connect clients to emergency housing and/or permanent housing. Funding includes in addition to two years of salary and benefits, required equipment and supplies. This position is fully funded thru FYE23 with the CDBG-CV program and will be advertised as a grant funded position for the period indicated, permanent employment is not guaranteed.
• Encampment Cleanup $50,000
These funds will be utilized for the environmental cleanup of homeless encampments only after it has been determined that the location is unoccupied and numerous postings have been made to announce such action.
RECOMMENDATION: Approval of Amendment Three to the Fifth Year Action Plan for the 45th Year Community Development Block Grant Program, as proposed, including acceptance of the CDBG-CV funding in the amount of $737,568.
The revenue account of 212-333378 (CDBG-CV) has been established for this funding. Resolution R-2021-82 will appropriate funds totaling $737,568 to various accounts. Staff also recommends that Resolution R-2021-82 be adopted by City Council.