Consideration and Adoption of Resolution No. 2020-14:  A presentation regarding the Community Development Block Grant's 2020/2021 Annual Action Plan recommendations and a resolution approving the City of Flagstaff 2020/2021 Annual Action Plan, authorizing its submission to the U.S. Department of Housing and Urban Development (HUD).

This item is before the Council for its approval of the City of Flagstaff’s 2020/2021 Annual Action Plan that is a required submission to the U.S. Department of Housing and Urban Development (HUD) as part of the Community Development Block Grant (CDBG). This document identifies how the anticipated 2020 CDBG allocation will address Flagstaff’s community needs consistent with the 2016-2020 Consolidated Plan and how funding will be distributed within Flagstaff city limits.

The plan is due to HUD on May 15, 2020. The City of Flagstaff Housing Section has received notice of its 2020 allocation from the Department of Housing and Urban Development.

Approval of the Resolution 2020-14 is necessary for the City of Flagstaff to receive its annual CDBG entitlement allocation. The 2020 CDBG allocation is $611,295.  In addition, the City of Flagstaff is able to include program income and reallocated funds from past year grants to increase funding available for projects. Those additional funds equal $48,986.00.  Therefore, a grand total of $660,281.00 is available for the 2020/2021 program year, through the Annual Action Plan process.

The proposed allocation takes into consideration the City’s financial impacts by including the estimated indirect rate of 10%.

The City of Flagstaff Council's CDBG Priorities: 

• Provide affordable housing (rental and ownership)
• Address homelessness
• Improve neighborhood revitalization
• Promote workforce job training
• Support education/ early childhood development

REGIONAL PLAN:

Goal NH.1. Foster and maintain healthy and diverse urban, suburban, and rural neighborhoods in the Flagstaff region.

• Policy NH.1.1. Preserve and enhance existing neighborhoods.

Goal NH.4. All housing is safe and sanitary.

• Policy NH.4.1. Expand the availability of affordable housing throughout the region by preserving existing housing, including housing for very low-income persons.
• Policy NH.4.3. Address accessibility issues and other housing barriers to persons with disabilities or special needs.
• Policy NH.4.4. Encourage green practices in housing construction and rehabilitation that support durable, healthy, and energy efficient homes.
• Policy NH.4.5. Renovate the existing housing stock to conserve energy and reduce utility and maintenance costs for owners and occupants.
• Policy NH.4.7. Enforce compliance with fair housing laws.

Goal NH.5. Eliminate homelessness.

• Policy NH.5.1. Provide adequate resources for families with children experiencing homelessness.
• Policy NH.5.2. Provide adequate resources for individuals experiencing homelessness.
• Policy NH.5.3. Support and expand programs that prevent homelessness.
• Policy NH.5.4. Make transitional housing resources available to populations experiencing homelessness.

Staff received Council direction on local priorities during the Council meeting of January 29, 2019, which are identified in Policy Impact above and Background/ History below.

1. Approve Resolution No. 2020-14 and authorize the submission of the Annual Action Plan to HUD by the May 15^th, 2020 due date. 
2. Modify Resolution No. 2020-14 and authorize the submission to HUD.
3. Not approve Resolution No. 2020-14 and risk losing the 2020 CDBG allocation.

In order to receive CDBG funding, the City must complete and submit to HUD the required 2020-2021 Annual Action Plan by May 15^th, 2020. This plan describes how CDBG funds will be used in the coming year.

Every two years, staff requests funding guidance from Council on CDBG Priorities and the overall CDBG process for the coming two years.  In January 2019 Council received an overview of the CDBG program and established five priorities:

1. Provide affordable housing (rental and ownership)
2. Serve those experiencing homelessness
3. Improve neighborhood revitalization
4. Promote workforce job training
5. Support education/ early childhood development

In the 2020 CDBG process, five external agency proposals were received.  There were two internal City of Flagstaff requests. The total requested in CDBG funding from all proposals was $891,640 with $660,281.00 available for the 2020/2021 program year, through the Annual Action Plan process.

Housing staff are responsible for determining whether a proposed activity is eligible and conducting a risk assessment of the project and applying agency. Federal funds require administrative knowledge, capacity to ensure compliance and timely expenditure of funds. Equivalent to the City's procurement standards, a ranking committee comprised of three community representatives and three City staff met to review the external proposals and rank them by consensus. Rankings primarily serve as a risk and benefit assessment and are the guiding input for staff recommendations forwarded to City Council.

Below is a list of the proposals in order of ranking. The proposals are categorized by Housing and Public Service categories as HUD has two separate funding limits and different criteria. Internal City of Flagstaff proposals are presented to meet City Council priorities or other unmet needs in the community and are not ranked (NR) competitively with the other proposals since the City would administer these projects directly.

A comprehensive Proposal Book that includes each of the below proposals and their corresponding ranking forms was distributed to Council by email the week of March 23, 2020. Below is a brief description of each proposed project, the dollar amount requested and each project's ranking score.

From the Housing/Economic Development Activities category the following proposals were received:

Housing Solutions of Northern Arizona: Sharon Manor House Rehabilitation Project –
8 households served
CDBG Funding would be used to offset construction costs for the rehabilitation of the first floor of the “house” at Sharon Manor. The existing 8-unit communal living facility would be transitioned into eight independent studio apartments, providing for increased privacy for victims of domestic violence and enabling better service to households of various sizes and composition.

Housing Solutions of Northern Arizona: Permanently Supportive Housing Acquisition – 
1 household served
CDBG Funding would be used for a down payment, enabling Housing Solutions to purchase a newly constructed, one-bedroom/one-bathroom condominium. That housing unit would be leased to Catholic Charities, who would provide permanent supportive housing to a SMI household (severely mentally ill). Down payment assistance from CDBG funding would enable HSNA to lower monthly mortgage costs, insuring the rental charge is within Catholic Charities rental limits.

City of Flagstaff: La Plaza Vieja Infrastructure –
2,230 individuals served
This capital improvement project aims to calm traffic and provide safer pedestrian crossings of Clay Avenue for residents and children of La Plaza Vieja. This improvement would allow for safer connectivity between residences and neighborhood parks across Clay Avenue by providing shorter pedestrian crossing distances, increased visibility of the pedestrians, improved ramps, and improved storm drain locations.

City of Flagstaff: Owner-Occupied Housing Rehabilitation (OOHR) –
6 households served
OOHR preserves existing affordable housing stock by eliminating health and safety hazards. It conducts home repairs, accessibility modifications that allow homeowners to live in safe, decent and affordable housing. The services are available to low to moderate Flagstaff homeowners. 6 households would be served.

From the Public Service category the following proposals were received:

Flagstaff Shelter Services: Housing as Healthcare Program –
500 individuals served
The Housing As Healthcare program enables Flagstaff service providers to better meet the comprehensive housing and healthcare needs of individuals and families experiencing a housing crisis by providing a single entry point for housing, community resources, medical care, and behavioral health services. Currently serving 300 unduplicated adults and children experiencing homelessness annually, FSS intends to grow the program to serve 500 people in 2021. CDBG dollars would support this programmatic expansion by partially funding crucial program staff salaries as well as bus passes for participants to get to/from housing and medical appointments.

Threaded Together: Sewing and Textile Employment Pathway (STEP) Program –
3 individuals served
The STEP program is a 9-month, 720-hour vocational training program in Flagstaff, AZ that expands economic opportunity for low-to moderate-income (LMI) residents and enriches our community. Housed in the Threaded Together Workroom, a full-service sewing shop, this program provides women and vulnerable populations, specifically survivors of domestic violence, the opportunity to learn technical and employable skills in a safe and empowering environment.

Tynkertopia: Full STEAM Ahead Job Training Program –
3 individuals served
Full STEAM Ahead would train three low- to moderate-income (LMI) persons at Tynkertopia, a nonprofit corporation primarily serving children ages 1-15 and parents living in the Sunnyside neighborhood and citywide. The training would focus on helping low-income children develop Science, Technology, Engineering, the Arts, and Mathematics (STEAM) knowledge and skills. The trainees will be mentored by Dr. Alice Christie, an educator with 50+ years of experience in PK through university education.

Housing Activities	Proposal/Projects	Request	Ranking
Housing Solutions of Northern Arizona	Sharon Manor House Rehabilitation	$244,400.00	119
Housing Solutions of Northern Arizona	Permanent Supportive Housing Acquisition	$115,000.00	113
City of Flagstaff	La Plaza Vieja Infrastructure	$200,000.00	Internal Not Ranked
City of Flagstaff	Owner Occupied Housing Rehabilitation Program	$100,000.00	Internal Not Ranked

 

Public Service Activity	Proposal/Project	Request	Ranking
Flagstaff Shelter Services	Housing as a Healthcare Program	$100,000.00	152
Threaded Together	Sewing and Textile Employment Pathway (STEP) Program	$32,240.00	109
Tynkertopia	Full STEAM Ahead Job Training Program	$100,000.00	53

In order to receive CDBG funding, the City must complete an Annual Action Plan that describes how CDBG funds will be used in the coming year and how the activities will accomplish the goals outlined in the 2016-2020 Consolidated Plan.

The creation of the Consolidated Plan is an extensive process involving public and stakeholder input (gathered through surveys, public meetings and a 45-day public comment period), community needs assessments and a housing market analysis. The data outlined in the Consolidated Plan helps determine the relative priority of activities and the populations that will be served in the coming years. HUD allows two priority designations – high and low. Assignment of priority does not reflect a lack of need for any particular population or activity; it merely identifies those conditions that are most likely to be addressed with limited CDBG funding. High (H) priority activities are likely to be funded with CDBG resources during the next five years. Low (L) priority activities may be funded as opportunities arise. The table attached summarizes planned CDBG activities, the priority level and 5-year numeric goal for each. Activities that will be targeted to special populations are indicated. The table is designed to meet HUD requirements.

For the 2020 Annual Action Plan, the ranking committee, along with staff are recommending that the City of Flagstaff fully fund the internal projects and partially fund the external Housing Solutions of Northern Arizona Sharon Manor Rehabilitation project with the available funds under the Housing/Economic Development Activities category. The ranking committee and staff are also recommending that two of the external proposals, Flagstaff Shelter Services and Threaded Together, receive partial funding as outlined in the chart below:

 

Housing/Economic Development Activities	Recommended Funding	Individuals/Households Served
Housing Solutions of Northern Arizona – Sharon Manor House Rehabilitation	$142,281.00	8 households
City of Flagstaff - La Plaza Vieja Infrastructure	$200,000.00	2,230 individuals
City of Flagstaff - Owner Occupied Housing Rehabilitation	$100,000.00	6 households
Total Housing/Economic Development Activities	$442,281.00
Public Service Activities (15% Cap)	Recommended Funding	Individuals/Households Served
Flagstaff Shelter Service - Housing as Healthcare Program	$80,000.00	400 individuals
Threaded Together Sewing and Textile Employment Pathway (STEP) Program	$13,000.00	1 individual
Total Public Service Activities	$93,000.00
Administration	$125,000.00
Total City of Flagstaff Fund Request	$660,281.00	2,631 individuals  14 households

Within the 2016-2020 Consolidated Plan and excluding administration, Flagstaff has leveraged $1,177,287 in CDBG expenditures with $4,805,666 in other, private or public funds. Flagstaff is proud of prior year CDBG accomplishments and continues to utilize viable resources to improve the quality of life in this community. In all, approximately 6,050 individuals and an additional 31 households were beneficiaries of CDBG services during the 2018 Program Year. If funded, the above recommendations would serve an additional 2,631 individuals and 13 households in the 2020/2021 program year.

Public process requirements for the Annual Action Plan offer extensive community involvement and collaboration ranging from public meetings and public comment periods to a ranking focused committee.
First Public Meeting – January 30^th, 2020

• Display advertisement (January 5^th & 12^th, 2020 – AZ Daily Sun)
• Meeting to discuss the CDBG proposal process and the Annual Action Plan

Second Public Meeting February 28^th, 2020

• Display advertisement (February 9^th & 16^th, 2020 – AZ Daily Sun)
• Meeting to review the submitted proposals and allowed public comment in preparation for making funding recommendations to City Council
• Display advertisement for meeting date change from April 14^th and 21^st
  to April 7^th, 2020 (March 22^nd and 29^th, 2020 – AZ Daily Sun)
   

With efforts to attract a diverse group of social service agencies, emails were distributed to all members of Coconino County’s Continuum of Care (300 members).  Additionally, agencies that had previously requested information and/or had been involved in the CDBG proposal process in prior years received personal invitations.  The proposal format was provided at the first public meeting and placed on the City website with a submission deadline of February 20^th, 2020.  Five external agency proposals were received along with two City of Flagstaff requests.