Community Development Block Grant Program:

1) Consideration and Adoption of Resolution No. 2016-15: A resolution approving the City of Flagstaff's 2016 -2020 Consolidated Plan and authorizing its submission to the U.S. Department of Housing and Urban Development (HUD).

2) Consideration and Adoption of Resolution No. 2016-16: A resolution approving the City of Flagstaff's 2016 Analysis of Impediments to Fair Housing Choice and authorizing its submission to the U.S. Department of Housing and Urban Development (HUD).

3) Consideration and Adoption of Resolution No. 2016-17: A resolution approving the City of Flagstaff's 2016/2017 Annual Action Plan and authorizing its submission to the U.S. Department of Housing and Urban Development (HUD).

This staff summary is for the approval of three separate plans that need to be submitted to the U.S. Department of Housing and Urban Development (HUD) as part of the Community Development Block Grant Program (CDBG). All three plans are due to HUD on May 15, 2016 and are required in order for the City of Flagstaff to maintain its compliance with federal CDBG regulations. Timely submission of these plans will enable the City to continue its annual entitlement allocation of CDBG funding.

Resolution No. 2016-15
The FY 2016-2020 Consolidated Plan (Con Plan) functions as a community guiding document to help achieve HUD’s primary objective and national objectives.

Resolution No. 2016-16
The Analysis of Impediments to Further Fair Housing Choice (AI) reviews current information and data available from a number of sources, identifies current impediments to fair housing in the City of Flagstaff, evaluates the efficacy of the 2011 Plan of Action and develops a new plan that takes appropriate steps to overcome the effects of any impediments identified to further fair housing choice and maintains records reflecting the actions taken.

Resolution No. 2016-17
The Annual Action Plan (AA Plan) is a document that specifies how the 2016/2017 annual allocation of CDBG funds will be spent.
 

Approval of the above resolutions is critical to the City of Flagstaff receiving its annual CDBG entitlement allocation. The 2016/2017 CDBG allocation is $599,050, an increase of $19,453 from last year. In addition, the City of Flagstaff is able to combine program income and reallocated funds from previous years to increase the funds available for allocation. Total program income and reallocated funds equals $41,743 for a grand total of $640,793 available for the 2016/2017 program year, through the Annual Action Plan process.

COUNCIL GOALS:
4) Explore and adopt policies to lower the costs associated with housing to the end user
10) Support and assist the most vulnerable


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.3. Make available a variety of housing types at different price points, to provide housing opportunities for all economic sectors.
• Policy NH.3.1. Provide a variety of housing types throughout the City and region, including purchase and rental options, to expand the choices available to meet the financial and lifestyle needs of our diverse population.
• Policy NH.3.3. Increase the availability of affordable housing for very low-income persons, through innovative and effective funding mechanisms.

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.4.2. Reduce substandard housing units by conserving and rehabilitating existing housing stock to minimize impacts on existing residents.
• 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.4.6. Consider and integrate public transportation when possible in planning housing developments, to help reduce a household’s transportation costs and minimize impact on the community’s roads and transportation system.
• 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.

 

None

A) Approve Resolution Nos. 2016-15, 2016-16 and 2016-17 and authorize the submission of the Con Plan, AI and the AA Pan to HUD.
B) Modify one or all Resolution Nos. 2016-15, 2016-16 and 2016-17 and authorize the submission to HUD.
C) Not approve Resolution Nos. 2016-15, 2016-16 and 2016-17 and risk losing future CDBG allocations.

In order to receive CDBG funding, the City must complete and submit to HUD three required plans by May 15, 2016.

1. The Consolidated Plan (Con Plan) (Resolution No. 2016-15) is due to HUD every five years. With Council's approval, the City’s Con Plan will provide the framework for the use of Community Development Block Grant (CDBG) funding beginning July 1, 2016 and ending June 30, 2021. The Con Plan was created with great community involvement and includes community identified goals for the next five years.
2. The Analysis of Impediments to Further Fair Housing Choice (AI) (Resolution No. 2016-16) is an analysis of Flagstaff’s fair housing conditions and outlines appropriate actions/goals to overcome any impediments identified while maintaining records reflecting the actions taken to further fair housing choice in Flagstaff. Being an entitlement community, the City must annually certify that it will affirmatively further fair housing
3. Lastly, the City must complete an Annual Action (AA) Plan (Resolution No. 2016-17). This plan describes how CDBG funds will be used in the coming year and how the annual allocation will be allocated.

Every two years, staff requests guidance from Council on CDBG Priorities and the overall CDBG process for the coming two years. On January 27, 2015 Council established four priorities (housing, homelessness, neighborhood revitalization and mentally ill / serial inebriate populations) and provided guidance to conduct a formal public proposal process to assess the community needs for CDBG funds. In the 2016 CDBG process, ten external agency proposals were received, along with two City of Flagstaff requests. Of the twelve proposals, one was received via email; it was incomplete and deemed ineligible.

Housing staff are responsible for determining whether a proposed activity is eligible, conducting a risk assessment of the project and applying agency. Federal funds require administrative knowledge and capacity to ensure compliant and timely expenditure of funds. Additionally, a committee comprised of three community representatives (one non-profit representative, one neighborhood association leader, and one external grants representative) and four City staff met to review the external proposals and rank them by consensus. Rankings are created primarily to serve as a risk and benefit assessment and are the guiding input of the staff recommendations forwarded to City Council.

Below is a list of the proposals in ranking order. The proposals are divided between Housing and Public Service categories as they have 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 as the City would administer these projects directly. A comprehensive Proposal Book that includes each of the below proposals was distributed to Council on March 25, 2016.
 

Housing Activities	Proposal/Project	Request	Ranking
Flagstaff Shelter Services	Energy Improvement Project	$19,800	128
Housing Solutions of Northern Arizona	Financial Assistance & Housing Counseling	$120,000	127
Northland Family Help Center	Shelter Renovation	$25,154	84
Arizona Conservation Corps	Rose Street Meeting Space	$85,000	27
City of Flagstaff	Owner Occupied Housing Rehabilitation	$150,000	NR
City of Flagstaff	Hal Jensen Community Center Rehabilitation	$105,239	NR
Public Service Activities	Proposal/Project	Request	Ranking
Flagstaff Shelter Services Operational	Assistance for Overflow & Housing Program	$70,000	144
Coconino County Community Services	Housing Stabilization	$60,750	105
Catholic Charities	Cedar Rose Emergency Shelter for Families	$30,000	104
DNA People’s Legal Services	Eviction Prevention	$11,400	88
Sunshine Rescue Mission, Inc.	Dorsey Manor Dedicated Case Manager	$35,000	81

In order to receive CDBG funding, the City must complete a Con Plan every five years. The City’s Con Plan for HUD Program Years 2016 – 2020 was recently completed. In addition to the 5-year Con Plan, the City must complete an AA Plan that describes how CDBG funds will be used in the coming year. As part of the 5-year Con Plan and AA Plans, the City certifies it will affirmatively further fair housing. As part of this certification, the City must complete an AI, take appropriate actions to overcome the effects of any impediments identified through the analysis, and maintain records reflecting the actions taken.

Resolution No. 2016-15 - Consolidated Plan (Con Plan)
The creation of the Con 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 Con 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 below 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.

 

5 Year Consolidated Plan Goals

Activity	Special Population	Priority Level	5 Year Goal
Priority Need: Revitalization, Public Facilities & Infrastructure
Facility Improvements	X	H	500 People
ADA Accessibility Improvements	X	L	500 People
Land Acquisition for Affordable Housing Development		L	5 Households
Infrastructure for Affordable Housing Development		L	5 Households
Priority Need: Public Services & Economic Opportunities
Service and Facility Operating Support	X	H	2,000 People
Employment & Job Training Support Services		L	5 People
Housing Stabilization Services including Eviction/Foreclosure Prevention and Legal Services		H	500 Households
Priority Need: Addressing Homelessness
Service and Facility Operating Support, including Outreach	X	H	5,000 People
Increase number of emergency /transitional shelter beds for families	X	H	20 Beds
Increase supply of permanent supportive housing	X	H	15 Beds
Priority Need: Decent Affordable Housing
Owner-occupied Housing Rehabilitation		H	25 Units
Rental Housing Construction		H	5 Units
Owner Housing Construction		H	2 Units
First-time Homebuyer Assistance		H	25 Households
Rental Housing Rehabilitation		L	10 Units

Resolution No. 2016-16 Analysis of Impediments to Fair Housing Choice (AI)
Similar to the Con Plan, the AI is created utilizing substantial community involvement (stakeholder surveys, phone interviews and a public comment process). The purpose of the AI is to identify legitimate fair housing problems (impediments) faced by people seeking housing in Flagstaff. The AI reviews current information and data available from a number of sources, identifies current impediments to fair housing in the City of Flagstaff, evaluates the efficacy of the 2011 Plan of Action and develops a new Plan of Action to address current impediments.

The City’s goals for the 2016 AI include:

1. Strive to eliminate all forms of illegal housing discrimination in Flagstaff.
2. Actively promote fair housing choice for all persons in Flagstaff.
3. Provide opportunities for housing occupancy regardless of race, color, religion, sex, familial status, disability and national origin in Flagstaff.
4. Actively promote housing in Flagstaff that is structurally accessible to, and usable by all persons including persons with disabilities.
5. Foster compliance with the nondiscrimination provisions of the Fair Housing Act.

Resolution No. 2016-17 Annual Action Plan (AA)
HUD has two funding caps with regard to the use of CDBG funds. Public Service expenditures are capped at 15% of the allocation and Program Administration is capped at 20% of the allocation. The rest of the available funding can be spent on Housing/Economic Development Activities.

Public Service Funding Recommendation
Federal CDBG regulations do not allow more than 15% of funds to be spent on Public Service Activities; $94,600 for Program Year 16/17. Below are the funding recommendations for the Public Service Category:
 

Public Service Activities	Proposal/Project	Request	Recommendation	Ranking
Flagstaff Shelter Services	Operational Assistance for Overflow Shelter & Housing Program	$70,000	$70,000	144
Coconino County Community Services	Housing Stabilization	$60,750	$24,600	105

Housing Activities	Proposal/Project	Request	Recommendation	Ranking
Flagstaff Shelter Services	Energy Improvement Project	$19,800	$19,800	128
Housing Solutions of Northern Arizona	Financial Assistance & Housing Counseling	$120,000	$120,000	127
Northland Family Help Center	Shelter Renovation	$25,154	$25,154	84
City of Flagstaff	Owner Occupied Housing Rehabilitation	$150,000	$150,000	NR
City of Flagstaff	Hal Jensen Community Center Rehabilitation	$105,239	$105,239	NR

The City expects to receive between $550,000 to $700,000 in CDBG funding during each of the next five years.

The attached Resolution 2016-17 is reflective of the recommendations listed above.   The 2016/2017 CDBG recommendations are based on a total of $640,793 in available funding and the City of Flagstaff's estimated indirect rate for 2016/2017 of 10%. 

• The 2016/2017 allocation is $599,050, a $19,459 increase from 2015/2016.  
• In addition to the annual allocation, there is $31,957 available from prior year program income and $9,786 in reallocated funds for a total of $640,793 available to allocate. Program income is gathered through the repayment of loans of the Owner Occupied Housing Rehabilitation and Homebuyer Financial Assistance programs. Reallocated funds derive from de-obligation of funds and/or activities completing their scope of work with a remainder of funding. The amount available is a decrease of $174,556 from 2015/2016 due to an unusually high amount of program income last year. Program income for the current year is more in line with historical trends.
• Federal CDBG regulations do not allow more than 15% of funds to be spent on public service activities; $94,651.14.  Staff is recommending an allocation of $94,600 as it is safer to budget slightly below the cap.
• CDBG administration and compliance are limited to 20% of the allocation; $126,201.53.  Staff is recommending an allocation of $126,000.
  • Grant Compliance and Administration = $70,651
  • City's Indirect Rate (Estimated10%)= $55,349                            

CDBG funds, leveraged with other private and public funds over the past 15 years, have resulted in benefits to thousands of Flagstaff residents. In program year 2014-2015, Flagstaff leveraged $694,849.61 in CDBG expenditures with $4,683,301.00 in other private or public funds.

  All three plans offer extensive community involvement and collaboration ranging from public meetings and public comment periods to telephone and online surveys. 

	Total Public Participation
5 Public Meetings & Multiple Surveys
January 6 &22, 2016	February 15, 2016	April 12 & 19, 2016
Open Grant Proposal
January 6 –February 5, 2016
Public Comment Period for Draft Consolidated Plan, Analysis of Impediments to Further Fair Housing & Annual Action Plan
March 1 – April 15, 2016
Proposal Ranking Committee with Citizen Participation & Staff
March 4, 2016

Resolution 2016-15 - Consolidated Plan (Con Plan)
The Housing Section met with the Coconino County Continuum of Care, which leads efforts to address homelessness for the Rural Continuum of Care managed by the Arizona Department of Housing. Two public consultation meetings took place to seek Con Plan input into 1) community needs and 2) proposed goals, activities and objectives. An online survey was conducted to secure input into community needs and priorities; 63 responses were received.

Resolution 2016-16 - Analysis of Impediments to Further Fair Housing (AI)
A public forum was conducted in conjunction with the Southwest Fair Housing Council with the purposes of: 1) providing fair housing education, 2) identifying fair housing concerns and issues, and 3) identifying solutions to address fair housing concerns in the City of Flagstaff. In addition, during the months of November and December 2015, a resident survey was conducted with 159 respondents. Interviews were conducted with 6 individuals working in the housing and related industries in Flagstaff and 13 participants in the Flagstaff Leadership Program. Both the survey and the interviews focused on gathering information to help identify possible fair housing impediments and ways to address them.

Resolution 2016-17 Annual Action Plan (AA)
The AA Plan process had three public meetings, a ranking committee with citizens and city staff, and a public comment period for community involvement.