10-15-2019 2020-2024 Consolidatated Plan2020-2024 Consolidated Plan and 2020 Annual Action Plan
City Council
October 15, 2019
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Policy Question
Should the City Council approve the Community Development Block Grant 2020-2024 Consolidated Plan and 2020 Annual Action Plan?
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CDBG Overview
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What is CDBG?
City receives federal Community Development Block Grant (CDBG)
CDBG provided through US Dept. of Housing & Urban Development (HUD)
Formula grant to address housing and community development needs.
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CDBG Goals
Decent housing
A suitable living environment
Expanded economic opportunities
To achieve these goals, US HUD funds activities that meet their identified national objectives and eligible uses.
https://files.hudexchange.info/resources/documents/Basically-CDBG-Chapter-1-Overview.pdf
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CDBG National Objectives*
LOW/MOD
SLUM/BLIGHT
URGENT
NEED
Spot
Basis
Area
Basis
Limited
Clientele
Area Benefit
Housing
Jobs
Urban
Renewal
*Chart by HUD
Org chart is from HUD; modified to make typeface match
Benefit low- and moderate-income persons
All Federal Way CDBG funds are geared toward this objective.
Prevent or eliminate slums or blight
Address urgent community need
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Eligible Uses of CDBG (Examples)
https://www.hudexchange.info/programs/cdbg-entitlement/cdbg-entitlement-program-eligibility-requirements/
ALSO:
§ 570.207 Ineligible activities. https://www.ecfr.gov/cgi-bin/text-idx?rgn=div5;node=24:3.1.1.3.4
(a) The following activities may not be assisted with CDBG funds:
(1)Buildings or portions thereof, used for the general conduct of government
(2)General government expenses.
(3)Political activities.
(b) The following activities may not be assisted with CDBG funds unless authorized under provisions of § 570.203 or as otherwise specifically not
(1)Purchase of equipment. ed herein or when carried out by an entity under the provisions of § 570.204.
(2)Operating and maintenance expenses.
(3)New housing construction.
(4)Income payments.
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The Consolidated Plan
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What is the Consolidated Plan?
HUD requires cities receiving CDBG to develop a Consolidated Plan every five years.
Guides investment of federal housing and community development funds, and other local funds.
Includes the 2020 Annual Action Plan for CDBG.
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Consultation Process
Monitoring, reporting, and consultation with agencies supported by the City
Survey, community events, and conversations with residents and stakeholders
Community conversations and input that take place at public meetings, the Human Services Commission, and City Council
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Timeline
Key informant consultation and interviews (Spring/Summer 2019)
Consolidated Plan and Annual Action Plan published 8/30/19.
Comment period from 8/30/19 to 10/15/19 (4:00 PM).
Two open houses, two public hearings, written comments
Submission to US HUD by 11/15/19
Consolidated Plan period runs 1/1/20 - 12/31/24
Annual Action Plan 2020 begins 1/1/20
Open House: 9/12/19, 5-6 PM, Federal Way Library (34200 1st Way S)
Public Hearing: 9/16/19, 5:30 PM, City Hall, Hylebos Room
Open House: 10/1/19, 5-6 PM, Church of Christ (30012 Military Rd S)
Public Hearing: 10/15/19, 6:30 PM, City Hall, Council Chambers
Written comments: until 10/15/19, 4:00 PM
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Assess Needs, Set Goals
Consolidated Plan process includes assessing needs …
Using publicly available data sources such as the US Census Bureau’s ACS.
Collecting input from Federal Way residents and human service organizations that serve them.
… and setting goals.
Goals are local priorities consistent with national objectives; informs strategies to address identified needs.
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Federal Way Needs
Workforce has multiple challenges.
Housing affordability is a concern.
Region lacks structure to address homelessness.
Needs for increasing quality of life.
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Retail jobs were among the most heavily impacted in the 2008 downturn. With the prospect of a near-term recession, a significant segment of the city’s working population could be at
risk.
in contrast to the countywide figure of 47% commuting out of their community across the county
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Cost-burdened = paying >30% of household income on housing costs
Per adopted growth targets, 12% of the housing supply should be affordable to households at or below 30% of the area median income. As of April 30, 2019, only about 2% of units were
affordable for this population.
Expand economic opportunities
Preserve affordable housing
Prevent and address homelessness
Establish and maintain suitable living environments
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Federal Way Needs (cont’d)
Workforce has multiple challenges.
Business sector with second most workers is “Retail Trade”; vulnerable during recessions
Source: ACS 11-15
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Retail jobs were among the most heavily impacted in the 2008 downturn. With the prospect of a near-term recession, a significant segment of the city’s working population could be at
risk.
in contrast to the countywide figure of 47% commuting out of their community across the county
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Cost-burdened = paying >30% of household income on housing costs
Per adopted growth targets, 12% of the housing supply should be affordable to households at or below 30% of the area median income. As of April 30, 2019, only about 2% of units were
affordable for this population.
Expand economic opportunities
Preserve affordable housing
Prevent and address homelessness
Establish and maintain suitable living environments
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Federal Way Needs (cont’d)
Workforce has multiple challenges.
Of 46,000 workers age 16+, 36,000 (78%) commute to work outside of Federal Way
Source: ACS 13-17
36,000
638,000
ACS 13-17
S0801
Workers age 16 and over: 46,080
Worked outside place of residence 77.9% 35,896.32
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Federal Way Needs (cont’d)
Workforce has multiple challenges.
Federal Way unemployment rate: 6.3%
Higher unemployment among younger people (age 16-24)
Source: ACS 13-17
622
590
ACS 1317, S2301
FW Labor Force Participation Rate, age 16+: 67.2%, 50,613
KC Labor Force Participation Rate, age 16+: 69.7%, 50,613
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Federal Way Needs (cont’d)
Housing affordability is a concern.
More than half of renter-occupied housing units are cost-burdened (spending > 30% on housing costs)
Source: ACS 13-17
7,737
7,800
7,200
ACS 1317, S2503
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Federal Way Needs (cont’d)
Housing affordability is a concern.
Not enough affordable housing for lowest income people.
Source: ACS 13-17
Gap between needed and available units.
Gap between needed and available units.
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Federal Way Needs (cont’d)
Region lacks infrastructure to address homelessness.
2019 point-in-time count: 124 unsheltered in Federal Way (generally accepted as an undercount)
2018: 10 of 40 deaths of people experiencing homelessness in South King County were in Federal Way.
Sources: All Home King County; Mayor’s Task Force on Homelessness; King County Medical Examiner’s Annual Summary (2018)
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PIT count: All Home http://allhomekc.org/wp-content/uploads/2019/07/Updated-7.11-King-County-Report.pdf
Task force report: https://www.cityoffederalway.com/sites/default/files/Complete%20HTF%20report.pdf
KC ME’s report: https://www.kingcounty.gov/depts/health/examiner/annual-report/~/media/depts/health/medical-examiner/documents/2018-annual-summary-homeless-deaths.ashx NOTE: page 2 of
this document provides info on causes of death, but not specific to FW.
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Federal Way Needs (cont’d)
Needs for increasing quality of life
Nearly half of homes built before 1980; estimated 13,000 housing units may have lead-based paint.
North Federal Way: older housing units need repair; 1,740 households have low-moderate income.
Source: map data from ACS 13-17;
low-mod household data from ACS 11-15 (via HUD/CHAS)
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Goals Identified
Expand economic opportunities
Preserve affordable housing
Prevent and address homelessness
Establish and maintain suitable living environments
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(1) Expand Economic Opportunities
Creation and growth of businesses.
Add jobs with living incomes.
Promote an environment attractive to new and expanding businesses.
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(2) Preserve Affordable Housing
Support homeownership.
Preserve affordable housing.
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(3) Prevent and Address Homelessness
Prevent homelessness.
Support facilities to fill gaps in the homeless services system.
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(4) Suitable Living Environment
Provide services to help households move toward self-sufficiency.
Provide services to households in crisis or at risk.
Build a vibrant community through facilities and activities focusing on deteriorating neighborhoods.
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Five Year Funding Amount
City will use CDBG funds to pursue goals and implement strategies.
Expecting about $3.6 million for 2020-24.
About $691,143 in CDBG funds annually.
Yearly allocations guided by the Annual Action Plan.
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The Annual Action Plan (AAP)
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What is the Annual Action Plan?
HUD requires cities receiving CDBG to develop an Annual Action Plan (AAP).
Concise summary of actions, activities, and the specific federal and non-federal resources that will be used each year to address priority needs and specific goals identified by the
Consolidated Plan.
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2020 AAP Overview
AAP goals in 2020:
Expand economic opportunities
Provide decent affordable housing
Establish suitable living environments
Projected CDBG funding for 2020:
$848,865
Includes $691,143 federal allocation for 2020 plus
$157,722 in funding from prior years
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Caps on Public Services and Administration
24 CFR 570.200
Limitation on planning and administrative costs. No more than 20 percent of the sum of any grant, plus program income, shall be expended for planning and program administrative costs
24 CFR 570.201
The amount of CDBG funds used for public services shall not exceed 15 percent of each grant
Other:
CATEGORIES OF ELIGIBLE ACTIVITIES PAGE
Acquisition of Real Property 2-3
Disposition 2-9
Public Facilities and Improvements 2-11
Clearance 2-18
Public Services 2-22
Interim Assistance 2-29
Relocation 2-33
Loss of Rental Income 2-35
Privately-Owned Utilities 2-36
Rehabilitation 2-38
Construction of Housing 2-47
Code Enforcement 2-51 Special Economic Development Activities 2-55
Microenterprise Assistance 2-63
Special Activities by CBDOs 2-66
Homeownership Assistance 2-73
Planning and Capacity Building 2-75
Program Administration Costs 2-77
Miscellaneous Other Activities 2-82
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2020 Proposed Projects: Planning and Administration
Program Administration: $134,000
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2020 Proposed Projects: Public Services
Federal Way Inclusion Program: $29,000
MSC Rental Assistance: $32,800
Pediatric Interim Care Center: $10,000
MSC YES Program: $12,178
Orion Employment Services: $10,000
Apprenticeship & Non-traditional Employment for Women (ANEW): $8,670
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Housing Repair Program: $175,000
Debt Services for Federal Way PAEC Section 108 Loan: $235,217
Code Compliance: $76,000
Habitat for Humanity Housing Repair: $62,000
Highline College - SBDC & StartZone (NRSA): $30,000
Highline College - SBDC & StartZone (Outside NRSA): $30,000
2020 Proposed Projects: CERF
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Questions?
2020-2024 Consolidated Plan and 2020 Annual Action Plan
City Council
October 15, 2019
Staff Contacts:
Sarah Bridgeford, Community Services Manager
Joseph Adriano, CDBG/Human Services Coordinator
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