[Council Communication]   [ 2000-2004 Consolidated Plan ]  [ CDBG Expenditure History in PDF Format ] 

Council Communication

Title:	CDBG Program Performance
Dept:	Community Development
Date:	January 10, 2002
Submitted By:	John McLaughlin, Director of Community Development Maria Harris, Associate Planner
Reviewed By:	Greg Scoles, City Administrator

Synopsis:	Balancing the most effective use of the Community Development Block Grant (CDBG) funds to address the needs of low- and moderate-income residents of Ashland with the administration requirements attached to the federal dollars has been a challenge during the first eight years of the City’s program. Staff believes the local program could be improved in both regards and suggests several changes.
Recommendation:	Direct Staff to initiate the process to revise the City’s CDBG program. The program changes would include the following. The number of funded projects would be limited to two for a three-year period. The annual grant cycle process would be changed to a three-year cycle. The local grant process would utilize a Request for Proposals process and limit awards to one affordable housing project consistent with the highest priorities of the adopted City of Ashland 2000-2004 Consolidated Plan (see attached 2000-2004 Consolidated Plan Goals and Strategies). The CDBG program year would shift from the fiscal year to the calendar year. The Housing Commission would review the applications and make a recommendation to the Mayor and City Council. A public hearing would be held at the City Council and the Mayor and City Council would make the final decision on the grant awards. The second project would be to retain the accessibility improvements to City-owned buildings to address the required access improvements from the agreement with the Oregon Department of Justice.
Fiscal Impact:	No fiscal impact. Twenty percent of the annual allocation will continue to be used for administration.
Background:	The City is an entitlement community under the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) Program. Entitlement communities include local governments with 50,000 or more residents, other local governments designated as central cities of metropolitan areas, and urban counties with populations of at least 200,000. Ashland is an entitlement community because it is considered a central city in the Medford-Ashland Metropolitan Statistical Area (MSA). The Medford-Ashland MSA includes all of Jackson County. Ashland received entitlement community status in 1994, and began receiving an annual allocation of CDBG funds in the same year. See the attached CDBG Expenditure History for a summary of how the funds have been used in the past. Ashland annually receives approximately $220,000 in CDBG funds. The City is required by HUD to have an approved Consolidated Plan to receive the annually CDBG entitlement grant, and the plan must be updated every five years. The plan contains a strategic plan describing how the jurisdiction will use its CDBG funds. Ashland’s first and previous Consolidated Plan covered 1995-1999, and was approved by the City Council on June 20, 1995. The current Consolidated Plan addresses the time period of 2000-2004, and was approved by the City Council on May 20, 2000. The goal of the CDBG program, as defined by HUD, is to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities principally for low-and moderate-income persons. Low- and moderate- income persons are defined as members of families earning no more than 80 percent of the area median income. The CDBG funds the City receives must be used for “eligible” projects that address the federal CDBG program goal. Ashland receives the tenth smallest annual CDBG allocation out of 1,024 entitlement cities in the United States. The federal project administration and reporting requirements are disproportionately burdensome in relation to the relatively small amount of CDBG funds the City receives. A city such as Ashland is faced with the same administration requirements as Eugene ($1.6 million), Portland ($11.9 million) and Seattle ($14.8 million). The federal regulations cap the amount of CDBG funds used on administration costs at 20% of the yearly allocation. For example, the City of Eugene receives seven times the amount Ashland gets, 1.6 million in CDBG funds a year, and manages an additional 1 million a year in a housing rehabilitation program revolving fund. They average 25 projects a year, and have seven staff members working exclusively on project administration. HUD has suggested “reducing the number of CDBG projects funded in the city’s Action Plan to relieve administrative requirements, and/or stage larger development projects over a 2-3 year period.” HUD has also questioned the use of CDBG dollars for projects not related to the provision of affordable housing, specifically identifying the use of funds for sidewalk construction. The number of projects is directly related to the amount of time required for administration because of the federal documentation and reporting requirements. The City has used CDBG funds to fund an average of six projects per year during the past eight years. The are several problems with the City’s current CDBG program. The primary problem is the backlog of projects. The City is supposed to complete the projects in the annual Action Plan within the year. However, on average projects have taken two to three years to complete because of the extensive reporting and project administration required by the CDBG regulations. As suggested by HUD, Staff believes the projects could be completed in a timely manner if the number of projects is reduced and a three-year grant cycle is used. Currently, the City allocates the annual CDBG grant using the following percentages – 65% for the competitive grant program, 10% for sidewalk improvements, 5% for accessibility improvements to City-owned buildings and 20% for program administration. The proposed program change would shift this allocation to 75% for the competitive grant program for affordable housing projects, 5% for accessibility improvements to City-owned facilities and 20% for program administration. The open approach to making grant awards at the local level has not maintained the focus on the highest priorities of the Consolidated Plan. In the current process, a Request for Proposals (RFP) is sent out to all social service and housing organizations in the Rogue Valley. Even though the RFP includes the priorities of the Consolidated Plan and requires proposed projects to address one of the strategies, a variety of proposals are routinely submitted. In past years, it seems the Budget Subcommittee that makes the grant awards felt pressured to give all applicants some funding despite the federal requirement that projects address the highest priorities in the local Consolidated Plan. In Staff’s opinion, the best way to address this problem is to limit proposals to affordable housing projects, the highest priority need identified in the 2000-2004 Consolidated Plan. Another problem is the use of the Budget process for making CDBG grant awards. Normally, grant recipients do not receive the funding they have been awarded until the fall after the awards are made. This is largely due to the federal reporting requirements which require an annual Action Plan to be prepared and submitted to HUD before the funds are released. Often, HUD does not approve the report at the first submission, and requires “corrections” before the report is approved. In addition, project documentation must be prepared (i.e. contracts, environmental review, wage-rate decisions) prior to the money being dispersed and the project/program moving forward. The problem with this time line is that projects/programs miss the summer months, which is especially important for construction and affordable housing projects. In addition, it is often impossible to complete the projects in the remaining six months. For this reason, Staff is suggesting the City’s CDBG “program year” be changed to the calendar year. The grant process can be completed in the fall prior to the program year, and the annual report submitted in the winter. This will allow grant recipients the full year to complete the project, including the critical summer months. Along with the shift away from using the Budget process, Staff believes the decision making body for the grant awards should be changed. The members of the Budget Subcommittee are not typically well versed in the housing and social service needs of the community as is to be expected since it is not a specific requirement of this volunteer position. In contrast, the Housing Commission is comprised of individuals with expertise in the housing and social service fields. In addition, many of the members are familiar with the federal requirements of the CDBG program. Staff’s recommendation is to use a two-part process for making the grant awards: 1. have the Housing Commission review the RFP’s and make a recommendation to the Mayor and City Council, and 2. hold a public hearing at the City Council, with the final decision made by the Mayor and City Council. The potential problem with limiting the annual CDBG allocation to two projects is the timeliness in which projects are completed. Federal regulations limit the maximum CDBG carryover to 1.5 the annual grant. As a result, the projects must be completed and the funds used in the twelve-month period. While using funds in a “timely” manner as defined by HUD is always a challenge, it becomes imperative with high cost projects. For this reason, it will be especially important for the grant recipients to demonstrate a well-planned project and to show the organization has the capacity to complete the project as proposed.

End of Document - Back to Top

City of Ashland
2000-2004 Consolidated Plan
for Community Development Block Grant (CDBG) Funds
Goals and Strategies

Adopted by the Ashland City Council in May 2000
Revisions Required by the Department of Housing and Urban Development in April 2001

The following are the City of Ashland goals for housing and community development for the next five years. For each area, goals are listed with strategies for achieving these goals. Also included are proposed accomplishments, time periods and amount of resources needed.

The strategies are ranked according to priority for spending HUD funds from the City of Ashland’s CDBG annual entitlement according to the following designations. The priorities are based on the needs identified in the previous section. Funding requirements identified are approximate costs, and will need further revisions, as projects are refined. In cases where there are competing projects for limited funds, the project(s) that are ranked the highest will be funded.

A: The City of Ashland plans to use CDBG funds for projects that meet these needs.

B: The City of Ashland may use CDBG for projects that meet these needs.

C: The City of Ashland does not plan to use CDBG funds for projects meeting these needs but will consider certifications of consistency for other entities which are applying for federal assistance to meet these needs.

Housing Goals

Goal 1: To increase the supply of affordable rental housing for extremely low-, low- and moderate-income families. Where possible, give funding priority to those projects that will provide benefits to residents with the lowest incomes.

Accomplishments: Provide funding to assist in obtaining and/or creating five affordable rental units.

Target Date for Completion: June 30, 2004

Funding Requirements: $300,000 – CDBG funds will be used to assist in the development of five units, projects will have to obtain additional funding from other sources.

Strategies

1.1 Encourage the acquisition and construction of affordable rental housing (B).

1.2 Support the acquisition and development of affordable rental housing units through a sustainable program, which retains the units as affordable in perpetuity, such as a land trust (A).

1.3 Support providers of public housing (C).

Goal 2: To increase the homeownership opportunities for extremely low-, low- and moderate-income households. Where possible, give funding priority to those projects that will provide benefits to residents with the lowest incomes.

Accomplishments: Provide funding to assist in obtaining and/or creating five units for ownership.

Target Date for Completion: June 30, 2004

Funding Requirements: $300,000 - CDBG funds will be used to assist in the development of five units, projects will have to obtain additional funding from other sources.

Strategies

2.1 Encourage the acquisition and construction of affordable housing by private developers (B).

2.2 Support acquisition and development of affordable rental housing units through a sustainable program, which retains the units as affordable in perpetuity, such as a land trust (A).

2.3 Support home ownership through down payment and home ownership assistance (B).

Goal 3: To maintain the existing affordable housing supply. Where possible, give funding priority to those projects that will provide benefits to residents with the lowest incomes. Also, give funding priority to those programs which retain the units as affordable in perpetuity, or recapture the rehabilitation costs for further use in Ashland.

Accomplishments: Provide funding to assist in the rehabilitation of five rental or ownership units.

Target Date for Completion: June 30, 2004

Funding Requirements: $50,000 - CDBG funds will be used to assist in the development of five units, projects will have to obtain additional funding from other sources.

Strategies

3.1 Retain existing affordable housing, rental and ownership, by supporting rehabilitation programs, which recapture the rehabilitation costs for further use in Ashland (B).

3.2 Retain existing affordable housing, rental and ownership, by supporting rehabilitation programs using a sustainable program, which retains the units as affordable in perpetuity (A).

Homeless Goals

Goal 4: Encourage the development of emergency and transitional housing for homeless families with children and/or individuals.

Accomplishments: Determine the current and future need for emergency and transitional housing in Ashland.

Target Date for Completion: June 30, 2004

Funding Requirements: $40,000 per year – CDBG funds used for city staff person for administration of the CDBG program.

Strategies

4.1 Coordinate with local providers of homeless services to determine the number and type of units needed in Ashland. Work with service providers to define homeless housing project plans and financial needs (C).

Goal 5: Support services for homelessness prevention and transition. Where possible, give funding priority to services that are part of a comprehensive approach that improves the living conditions of clients. Safety net services, or services that meet basic needs shall only be funded with CDBG dollars if it can be demonstrated that clients receiving those benefits are part of a program that will eventually help them obtain self-sufficiency.

Accomplishments: Provide support for programs with self-sufficiency orientation.

Target Date for Completion: June 30, 2004

Funding Requirements: As needed.

Strategies

5.1 Provide assistance non-profit organizations that assist the homeless provide transition assistance to the homeless, and help prevent homelessness (B).

5.2 Provide assistance to establish a permanent community kitchen for the preparation of meals for the homeless and potential homeless (B).

5.3 Special Populations Goals

Goal 6: To support housing and supportive services for people with special needs. People with special needs include the elderly, the frail elderly, persons with developmental disabilities, persons with physical disabilities, persons with severe mental illness, persons with alcohol or other drug dependencies and persons with HIV/AID or related illnesses.

Accomplishments: Provide funding and/or technical assistance for the creation of one project to provide housing for families and/or individuals with special needs.

Target Date for Completion: June 30, 2004

Funding Requirements: As needed and available - CDBG funds may be used to assist in the development of one housing project, projects will have to obtain additional funding from other sources.

Strategies

6.1 Encourage development of transitional and supportive housing for extremely low- and low-income special needs populations (B).

6.2 Provide assistance to non-profit organizations that provide support services for extremely low- and low-income special needs populations (C).

Community Development Goals

Goal 7: To provide safe and convenient access to alternative transportation routes in extremely low-, low- and moderate-income neighborhoods.

Accomplishments: Provide transportation options and links to the public transit system in extremely low-, low- and moderate-income neighborhoods.

Target Date for Completion: June 30, 2004

Funding Requirements: $110,000

Strategies

7.1 Replace hazardous sidewalks in extremely low-, low- and moderate-income neighborhoods (B).

7.2 Construct 3,800 lineal feet of new sidewalks on existing streets in extremely low-, low- and moderate-income neighborhoods (A).

7.3 Install 10 wheel-chair ramps in existing sidewalks (A).

7.4 Install traffic-calming measures on streets in extremely low-, low- and moderate-income neighborhoods with excessive vehicle speeds and unsafe conditions for residents (B).

Goal 8: To make city facilities easier and safer to use for people with disabilities.

Accomplishments: Complete accessibility changes to city facilities as recommended by the Oregon Department of Justice.

Target Date for Completion: June 30, 2004

Funding Requirements: $110,000

Strategies

8.1 Make accessibility improvements to city-owned facilities (A).

Other Goals

Fair Housing

Goal 9: To affirmatively further fair housing.

Accomplishments: Develop understanding of fair housing requirements at local level.

Target Date for Completion: June 30, 2004

Funding Requirements: $40,000 per year – CDBG funds used for city staff person for administration of the CDBG program.

Strategies

9.1 Establish a local means for citizens to get specific information about fair housing, and report fair housing violations. Review current fair housing violation process, improve as needed. Develop and provide brochures and advertisements on how to file fair housing complaints (B).

9.2 Gain a thorough understanding of fair housing issues, and impediments to fair housing. Staff will attend at least one training on fair housing issues (A).

9.3 Continue to support the activities of the Fair Housing Council of Oregon (C).

Lead-Based Paint

Goal 10: Assure activities assisted by the City are conducted in compliance with state and federal laws that apply to lead-based paint hazards, and the information distributed about lead-based paint is in compliance with current state and federal laws.

Accomplishments: Provide information needed to assess contractor compliance with lead-based paint analysis sand reduction requirements. Maintain compliance of City of Ashland CDBG program with lead-based paint requirements.

Target Date for Completion: June 30, 2004

Funding Requirements: $40,000 per year – CDBG funds used for city staff person for administration of the CDBG program.

Strategies

10.1 Review practices used to evaluate and abate lead-based paint hazards in housing projects assisted with CDBG funds through the City (A).

10.2 Keep updated on state and federal laws that relate to lead-based paint (A).

Anti-Poverty

The Housing and Community Development Act of 1992 requires communities to include in their Consolidated Plan a description of an anti-poverty strategy. This strategy takes into consideration factors over which the City has control. The City of Ashland has limited resources for addressing the issues involved in reducing poverty and improving the self-sufficiency of low-income residents. Affordable housing is one of the factors directly related to poverty that the City of Ashland does have some ability to influence, and the related goals are covered in the Housing Goals section. In addition, the City supports housing and service programs targeted at the continuum of care needs of the homeless. The goals related to housing and support services are addressed in the Homeless Goals section.

Goal 11: To reduce the number of people living in poverty in the City of Ashland.

Strategies

See Goals and Strategies under Housing Goals and Homeless Goals.

Goal 12: Promote and support activities in the community that improve or provide access to economic opportunities for extremely low- and low-income residents of Ashland.

Accomplishments: Support programs that provide extremely low- and low-income persons economic opportunities.

Target Date for Completion: June 30, 2004

Funding Requirements: As needed and available.

Strategies

12.1 Encourage the creation and retention of living wage jobs for extremely low- and low-income persons and people with disabilities (B).

12.2 Support organizations that provide job training and access to employment for extremely low- and low-income persons, homeless persons and persons with special needs (B).

12.3 Support programs that assist individuals living at or below the poverty level in building financial assets (B).

12.4 Support affordable and flexible childcare services for extremely low-, low- and moderate-income Ashland residents (B).

Barriers to Affordable Housing

Goal 13: Remain aware of the barriers to affordable housing in Ashland, and where it is within the City’s ability, take steps to overcome such barriers.

Accomplishments: Identification of existing and potential barriers to housing affordability and modification of local ordinances where possible.

Target Date for Completion: June 30, 2004

Funding Requirements: $40,000 per year – CDBG funds used for city staff person for administration of the CDBG program.

Strategies

13.1 Consider the potential impacts on housing affordability prior to enacting changes to requirements for residential development in the Ashland Land Use Ordinance (A).

Encouraging Resident Initiatives

The City of Ashland has limited influence over the management of the public housing units in Ashland, and the degree those residents are involved in management and working towards home ownership. However, the City of Ashland will support efforts made by the public housing providers (Housing Authority of Jackson County, Farmers Home Administration, Oregon Housing and Community Services Department and HUD) to encourage resident initiatives.

Though not public housing in the classic sense, the City of Ashland has financially contributed to residential units provided through the Ashland Community Land Trust (ACLT). ACLT involves residents of the units in the Board of Directors for the organization. In addition, ACLT is based on a model of self-sufficiency in which participants learn financial management and work towards home ownership.

Institutional Structure and Coordination

Within the preceding narrative of this Plan a large number and wide variety of public and private entities have been identified as the City’s partners in the delivery of community development resources throughout the Rogue Valley. This group of agencies and organizations constitutes a highly effective network, providing coordinated housing, human services and economic development assistance to low income members of the community.

Goal 14: To provide institutional structure and intergovernmental cooperation.

Accomplishments: Continued support of local coordination structure.

Target Date for Completion: June 30, 2004

Funding Requirements: $40,000 per year – CDBG funds used for city staff person for administration of the CDBG program.

Strategies

14.1 Continue to provide staff support to the City of Ashland Housing Commission (A).

The Housing Commission was established in 1995 to monitor the accomplishments of the City’s housing program, to make recommendations to the City Council on housing policy and to serve as an advocate for affordable housing in the City’s political process. The Commission also provides coordination and continuity to programs to meet housing and community development needs. The Housing Commission oversees specific affordable housing projects undertaken by the City in partnership with private groups. The Commission promotes cooperation between local non-profit organizations and governmental agencies for projects in Ashland to insure that the resources are used as efficiently as possible and that there are not duplication of efforts. The Housing Commission is comprised of private developers, social service agency staff, real estate professionals and interested Ashland residents.

.

End of Document - Back to Top

The CDBG Expenditure History is available as a PDF file.  Click on the link below to download and view the file:

CDBG_history.pdf (47.3KB)

The above document(s) are Adobe® Acrobat® PDF files and may be viewed using the free Adobe® Acrobat® Reader™. Most newer web browsers already contain the Adobe® Acrobat® Reader™ plug-in. However, if you need it, click on the "Get Acrobat® Reader™" icon to download it now.