Council Communication

Public Hearing and Decision on the 2005-2009 Consolidated Plan for use of Community Development Block Grant Funds
Meeting Date:	May 3, 2005		Primary Staff Contact: Brandon Goldman 552-2076 , goldmanb@ashland.or.us
Department:	Community Development		Secondary Staff Contact: John McLaughlin, 552-2043 mclaughj@ashland.or.us
Contributing Departments:	None
Approval:	Gino Grimaldi

Statement: Beginning in August 2004, the Planning Department began the update of the Consolidated Plan for Community Development Block Grant (CDBG) Funds. The plan was compiled with the assistance of a consultant, Epler and Associates, in accordance with federal regulations. Consistent with the housing and homeless trends identified in the previous 2000-2004 Consolidated Plan, the updated plan concludes: 1) housing prices have increased more rapidly than household income in the past ten years; 2) there is a significant gap between the amount low- and moderate-income households have to spend on housing and the market rate cost of housing in Ashland; 3) the number of potentially homeless is growing; and 4) Ashland's poverty rate is similar to the state and national levels. Spending priorities for CDBG funds (attached pgs 55-59) provide 14 goals to address affordable rental and ownership housing, emergency housing and homeless support services, and other CDBG eligible activities. To best direct the limited CDBG funds the spending priority section recommends only awarding funds to one, or two affordable housing projects in a given year, and potentially one award to address homeless needs. Other goals will be addressed over the 5-year period through the use of staff administrative work, and Social Service and Economic Development Grants independent of the CDBG program.
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Background: The Needs Analysis component of the 2005-2009 Consolidated Plan for CDBG Funds was reviewed at the March 30th Housing Commission meeting. The "spending priorities" listed on pages 55-59 are consistent with the goals included in the previous plan. A focus group comprised of Staff, non-profit representatives, and members of the Ashland Housing Commission met on March 2, 2005 to discuss the needs identified in the plan and to suggest potential uses for CDBG funds to address these identified needs. At this meeting the general consensus was that the goals identified in the 2000-2004 Consolidated Plan were still relevant. The City of Ashland receives approximately $237,500 a year in CDBG funds from the U.S. Department of Housing and Urban Development (HUD) for projects benefiting low- and moderate-income residents. As a condition of receiving these federal funds, HUD requires the City to maintain a five-year "Consolidated Plan" which assesses and prioritizes the City goals for use of CDBG funds. The CDBG Consolidated Plan also contains "spending priorities" which determine the types of projects for which the funds may be used. The City is required to update the Consolidated Plan every five years in order to continue receiving CDBG funds and to modify the plan according to changing conditions if needed. The City's first Consolidated Plan covered 1995-1999, and was adopted in June 1995. The current plan, the 2000-2004 Consolidated Plan, was drafted in 2000, revised in 2002, and expires on June 30, 2005. Ashland began receiving an annual allocation of CDBG funds in 1994. Some of the past projects funded by CDBG dollars include the remodel of the new Community Health Center, the purchase of three vacant lots to provide housing through the Ashland Community Land Trust and the Rogue Valley Community Development Corporation, the purchase of the site for the Interfaith Care Community of Ashland to operate a homeless resource center, for emergency repairs to homes owned by low-income families through the Housing Authority of Jackson County and staff support for Interfaith Care Community of Ashland. The federal regulations prescribe the data that must be included in the plan, the time line for the plan update, and the community involvement process. These plan requirements along with federal restrictions regulating how CDBG money can be used do not provide much flexibility in tailoring the document to Ashland. Nevertheless, there is valuable data in the plan, that provides information to support ongoing housing and social service objectives. As part of the update process, two public hearings are required. One hearing must be held during the development of the plan, and one hearing held after a draft is completed. The first hearing was held on March 30 by the Housing Commission and an additional meeting on the development of the Plan was held on April 27th before the Housing Commission. As the decision making body, the completed Draft 2005-2009 Consolidated Plan is presented to the City Council for adoption.
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Fiscal Impact: Each year the Consolidated Plan is executed through the approval of an annual CDBG Action Plan that explicitly identifies the use of the CDBG funds allocated to the City of Ashland. The amount awarded each year corresponds directly to the CDBG allocation Ashland receives from the Department of Housing and Urban Development (HUD) and thus there is no impact on the City's General Fund.
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Council Options: Upon review of the 2005-2009 CDBG Consolidated Plan, and testimony provided during the public hearing, the Council shall determine whether the proposed strategies within the plan will continue to effectively address the needs of Ashland's low-income and special needs populations. The Council may incorporate changes to the Consolidated Plan if necessary to ensure the target populations are best served by the use of the Community Development Block Grant funds. Modifications would be incorporated into the Plan prior to its required submission to HUD on May 13th, 2005.
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Staff Recommendation: Staff recommends the adoption the 2005-2009 CDBG Consolidated Plan as submitted. The Housing Commission met on April 27th, 2005 to forward a recommendation to the Council which will be presented during the May 3rd public hearing.
Possible Motions: Move to approve the 2005-2009 Consolidated Plan for use of Community Development Block Grant Funds. Move to approve, with specific modifications, the 2005-2009 Consolidated Plan for use of Community Development Block Grant Funds.
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Attachments: 2005-2009 CDBG Consolidated Plan (click on the link below to see attachment) (The appendix to this plan contains key informant interviews) click here for Housing Commission Minutes of March 30, 2005 (see in minutes: Public hearing on the Needs Assessment component of the Consolidated Plan)

(revised)2005-2009 CDBG Consolidated Plan Draft.pdf (4671.8KB)

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