REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: 2020-2021 Consolidated Annual Performance and Evaluation Report (CAPER)
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The Department of Housing and Urban Development (HUD) appropriates funding through its Community Development Program (CDP) to cities, counties, and states. The City of Santa Clara receives Community Development Block Grant (CDBG) funds and Home Investment Partnerships (HOME) funds from HUD to provide social programs, affordable housing and community development projects that benefit low-income persons and households. For fiscal year 2020-2021, the City also received one-time funding from the CARES Act to provide emergency programs to assist low-income households affected by the COVID-19 crisis.
HUD requires that recipients of its funding prepare a five‐year strategic plan called a Consolidated Plan (ConPlan). The 2020-2025 ConPlan was approved by the City Council on May 12, 2020. The ConPlan identifies housing and community needs of low-income persons within the City and prioritizes resources to address those needs over a 5-year period. The objectives and goals of the ConPlan are accomplished through Annual Action Plans.
Annual Action Plans detail projects, activities and the specific federal and non-federal resources that the City will use each year to address its ConPlan needs and goals. The FY 21/22 Annual Action was approved by the City Council on May 4, 2021. During the Public Hearing, City Council directed staff to explore increasing the minimum Public Service Grants to help reduce city administrative costs.
At the end of each program year, the City prepares its Consolidated Annual Performance and Evaluation Report (CAPER) which details annual accomplishments and progress towards achieving the ConPlan goals.
DISCUSSION
The attached 2020/21 CAPER highlights the City's HUD accomplishments during the 2020/21 Program Year (PY), the estimated number of beneficiaries, and the resources used to complete the activities and projects. The major accomplishments include, but are not limited to:
• Tenant Based Rental Assistance (TBRA): TBRA provided rental and deposit assistance to homeless individuals or those at risk of becoming homeless households in Santa Clara with incomes at or below 60% of the Area Median Income (AMI). Fifty-two households, including seventy-five adults, and 107 children, were assisted with rental subsidies and rental deposit assistance. Case management services were also provided and funded through the City’s special revenue funds. Funds spent: $687,087.69 (HOME), and $230,700 (City Affordable Housing Funds and City Housing Successor Funds)
• Public Services and Homelessness Services: Fifteen public service activities administered by eleven nonprofit agencies, the City and County were funded to provide a variety of services, such as meals, legal services, senior care and housing assistance to low-income residents. Approximately 1,500 people benefited from these services. Funds spent: $237,119 (CDBG), $95,000 General Funds, $110,000 (City Housing Successor Funds), and $78,952 (City Affordable Housing Funds)
• Capital Improvements Projects: Twelve households benefited from capital improvements, which included single-family home rehabilitation and improvements completed through the City’s Neighborhood Conservation and Improvement Program (NCIP) and Rebuilding Together Silicon Valley’s Minor Home Repair Program. Funds Spent: $392,156 (CDBG)
• Emergency Rental Assistance Program: 203 households, comprising 620 individuals, received emergency rental assistance through the City’s Emergency Rental Assistance Program (ERAP). Funds Spent: $543,472.13 (CDBG) and $1,020,771.32 (CDBG-CV)
During the May 4, 2021 Annual Action Plan (AAP) Public Hearing, City Council directed staff to explore ways to reduce administrative costs. Increasing the minimum grant amount to public service agencies (PSAs) was an option discussed. Currently, the City funds eleven PSAs with an annual budget of approximately $231,000; an average of $21,000 per agency. If Staff increased the minimum grant amount to $30,000, there would be enough funding for 7 agencies. If the City Council would like to move forward with this option, Staff can facilitate this change during the upcoming 2022-2023 AAP process. Staff would also seek direction on how to fund agencies that would lose funding because of this change. City Council can choose to cease funding these agencies or fund them with General Funds. Staff estimates a funding gap of $60,000.
FISCAL IMPACT
There is no cost to the City other than administrative staff time and expense to produce the 2020/21 CAPER.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov.
A draft of the CAPER was made available for public review on September 9, 2021. A public notice was published in the Santa Clara Weekly on September 9, 2021 noticing availability of the CAPER for review, and the public review period from September 9, 2021 through September 23, 2021. The public review period provides the public an opportunity to review and comment on all the documents prior to the submission of the reports to HUD. All documents were also made available on the City’s website and made available at public locations including the City Clerk’s Office, and the Housing and Community Services Division. Due to the continuing COVID crises, copies could not be made available at libraries and senior centers as years before. Notification of the availability of the documents was sent to interest groups and local nonprofit agencies. As of the date of this report, no comments have been received.
ALTERNATIVES
1. Approve the 2020-2021 Consolidated Annual Performance and Evaluation Report (CAPER) (Attachment 1) and authorize the City Manager, or her designee, to execute the documents for submission to the U.S. Department of Housing and Urban Development (HUD) by September 30, 2021 unless otherwise directed by HUD.
2. Direct staff to incorporate all public comments into the final version to be submitted to HUD on or before September 30, 2021.
3. Any other Council direction.
RECOMMENDATION
Recommendation
1. Approve the 2020-2021 Consolidated Annual Performance and Evaluation Report (CAPER) (Attachment 1) and authorize the City Manager, or her designee, to execute the documents for submission to the U.S. Department of Housing and Urban Development (HUD) by September 30, 2021 unless otherwise directed by HUD.
2. Direct staff to incorporate all public comments into the final version to be submitted to HUD on or before September 30, 2021.
Staff
Reviewed by: Andrew Crabtree, Director of Community Development
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. 2020-2021 Consolidated Annual Performance Evaluation Report (CAPER)