HomeMy WebLinkAbout2021-64 - Approving a Second Substantial Amendment to the 2020-21 Annual Action Plan for the Federal Community Development Block Grant ProgramRESOLUTION NO. 2021-64
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING A
SECOND SUBSTANTIAL AMENDMENT TO THE 2020-
2021 ANNUAL ACTION PLAN FOR THE FEDERAL
COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
WHEREAS, the City of Newport Beach ("City") participates in the United States
Department of Housing and Urban Development ("HUD") Community Development Block
Grant ("CDBG") Program;
WHEREAS, HUD requires the City to prepare a Five -Year Consolidated Plan for
the use of HUD grant programs outlining the use of the CDBG funds and the strategic
vision for housing and community development in the City;
WHEREAS, the City Council adopted Resolution No. 2020-51 on May 12, 2020,
approving the 2020-2024 Consolidated Plan, the 2020-2021 Annual Action Plan, and the
Citizen Participation Plan for the CDBG Program;
WHEREAS, the 2020-2021 Annual Action Plan appropriates the CDBG annual
grant and other available grant funds during the fiscal year;
WHEREAS, as a result of COVID-19, the United States Congress passed the
Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in March 2020,
authorizing $2.2 trillion in stimulus measures to prevent, prepare for, and respond to the
COVID-19 pandemic, including making available $5 billion in Community Development
Block Grant Coronavirus ("CDBG-CV") funds for CDBG entitlement communities;
WHEREAS, on July 14, 2020, the City Council adopted Resolution No. 2020-69
approving the substantial amendment to the 2020-2021 Annual Action Plan and
authorizing the City to receive $219,324 in CDBG-CV funds, which is separate and
distinct from the City's regular allocation of CDBG funds;
WHEREAS, in September 2020, a third round of CDBG-CV funds in the amount
of $2 billion was allocated to state and local governments, of which the City will receive
$741,079 ("Round 3 Funds");
WHEREAS, a second substantial amendment to the 2020-2021 Annual Action
Plan is necessary to appropriate the Round 3 Funds to support activities and services to
prevent, prepare for, and respond to the COVID-19 pandemic;
Resolution No. 2021-64
Page 2 of 4
WHEREAS, in the event of a substantial amendment to an annual action plan, the
Citizen Participation Plan normally requires a 30 -day public review period followed by a
public hearing prior to adoption; however, in light of COVID-19, HUD reduced the notice
period to five days and authorized the City to determine the form of notice pursuant to the
Waivers of Community, Planning and Development ("CPD") Grant Program Requirements
to Prevent the Spread of COVID-19 and Mitigate Economic Impacts caused by COVID-19;
WHEREAS, on July 2, 2021, the City published a notice on the City's website and
sent e-mail notification that the draft second substantial amendment to the 2020-2021
Annual Action Plan would be available to the public for review and comment from July 3,
2021 to July 13, 2021;
WHEREAS, a hearing was held by the City Council on July 13, 2021 in the City
Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice
of time, place and purpose of the public hearing was given in accordance with the Ralph
M. Brown Act and the Waivers of CPD Grant Program Requirements to Prevent the
Spread of COVID-19 and Mitigate Economic Impacts approved by HUD. Evidence, both
written and oral, was presented to, and considered by the City Council at this public
hearing; and
WHEREAS, the City Council desires to amend the 2020-2021 Annual Action Plan
and approve the second substantial amendment to the 2020-2021 Annual Action Plan.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council hereby approves the second substantial amendment
to the 2020-2021 Annual Action Plan as provided in Exhibit A, attached hereto and
incorporated herein by reference.
Section 2: The City Council does hereby authorize: (a) the City Manager, or
his/her designee, to: 1) submit the 2020-2021 Annual Action Plan as amended to HUD;
2) execute the Round 3 Funds grant agreement and all related documents on behalf of
the City; and 3) execute all subrecipient agreements with the organizations receiving
allocations of CDBG and CDBG-CV funds in the 2020-2021 Annual Action Plan as
amended; and (b) the Community Development Director, or his/her designee to be the
official representative of the City to administer the program and submit required
environmental documentation to HUD for CDBG projects.
Resolution No. 2021-64
Page 3 of 4
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the approval of the second substantial
amendment to the 2020-2021 Annual Action Plan is exempt under 24 CFR Part 58,
Section 58.34 of the National Environment Policy Act of 1969 (NEPA), as amended.
Section 6: The City Council finds the adoption of this resolution and the
approval of the second substantial amendment to the 2020-2021 Annual Action Plan is
not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title
14, Division 6, Chapter 3, because it has no potential for resulting in physical change to
the environment, directly or indirectly.
Resolution No. 2021-64
Page 4 of 4
Section 7: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 13th day of July, 2021.
ATTEST:
Leilani I. Brown / K
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
��
CAvery
r
%t�'--!fi0R%
Attachment: Exhibit A — Second Substantial Amendment to the 2020-2021
Annual Action Plan
1�.."at
INIAll,
Leilani I. Brown / K
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
��
CAvery
r
%t�'--!fi0R%
Attachment: Exhibit A — Second Substantial Amendment to the 2020-2021
Annual Action Plan
Community Development Block Grant Program
CARES Act Second Substantial Amendment
Annual Action Plan
FY 2020-2021
This page intentionally left blank.
NEWPORT BEACH
CITY COUNCIL
Brad Avery
Mayor
Kevin Muldoon
Mayor Pro Tem
Noah Blom
Council Member
Joy Brenner
Council Member
Diane B. Dixon
Council Member
Duffy Duffield
Council Member
Will O'Neill
Council Member
This page intentionally left blank.
TABLE OF CONTENTS
EXECUTIVESUMMARY........................................................................................................................................................... 2
Background.............................................................................................................................................................................. 2
Sources..................................................................................................................................................................................... 2
Useof CDBG-CV3 Funds................................................................................................................................................... 3
AP -15 EXPECTED RESOURCES........................................................................................................................................... S
MatchingRequirements........................................................................................................................................................ S
AP -20 ANNUAL GOALS AND OBJECTIVES................................................................................................................... 6
AP -35 PROJECTS AND ACTIVITIES.................................................................................................................................... 7
AP -90 PROGRAM SPECIFIC REQUIREMENTS.................................................................................................................9
Appendices
Appendix A Citizen Participation
Appendix B SF -424, SF -424D, Certifications
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan
EXECUTIVE SUMMARY
Background
Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
which was signed by the President on March 27, 2020, to respond to the growing
effects of this historic public health crisis.
The CARES Act made available $5 billion in Community Development Block Grant
Coronavirus (CDBG-CV) funds to prevent, prepare for, and respond to the COVID-
19 pandemic. As a recipient of Community Block Development Grant (CDBG) funds,
the City of Newport Beach is eligible to receive CDBG-CV funds from the U.S.
Department of Housing and Urban Development (HUD).
The CDBG-CV funds are separate and distinct from the City's regular CDBG funds.
CDBG-CV funds must be used to prevent, prepare for, or respond to the COVID-19
pandemic, and may not be used to supplant other funding sources. Additionally, CDBG-
CV funds must meet a CDBG program national objective, and the activity must be
CDBG-eligible. HUD also provides for communities to accept several regulatory
waivers that facilitate the rapid use of CDBG-CV funds. The regulatory waivers and
flexibilities are intended to prevent the spread of COVID-19 and facilitate assistance to
households and businesses economically impacted by COVID-19.
Sources
The City of Newport Beach initially received $219,324 in "Round 1 " CDBG-CV funds
(CDBG-CV1) to be used for activities that prevent, prepare for, or respond to the
impacts of COVID-19. City Council held a public hearing in July 2020 to substantially
amend the 2020-2021 Annual Action Plan to allocate CDBG-CV1 funds to an
Economic Development — CDBG Small Business Grant Program to assist small
businesses suffering from economic hardships resulting from the COVID-19 pandemic.
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan 2
The substantial amendment to the 2020-2021 Annual Action Plan was adopted on July
14, 2020 by Resolution 2020-69, allocating CDBG-CV1 funds as follows:
Economic Development — CDBG Small Business Grant Program $175,460
CDBG Program Administration $43,864
Total CDBG-CV1 $219,324
"Round 2" of CDBG-CV funding (CDBG-CV2) was allocated only to states. Therefore,
the City of Newport Beach did not receive CDBG-CV2 funds.
(MBGCVFunding - Rcund 3
The City of Newport Beach will receive the following grant under CDBG-CV "Round
3" funds (CDBG-CV3) from HUD:
CDBG-CV3 $741,079
CDBCrCvhIndrg-,ar
Collectively, the City of Newport Beach is the recipient of the following total
CDBG-CV funds:
CDBG-CV1 $219,324
CDBG-CV3 $741,079
Total CDBG-CV $960,403
Use of CDBG-CV3 Funds
This Second Substantial Amendment to the 2020-2021 Annual Action Plan allocates
CDBG-CV3 funds, to support the CDBG Program, With the overall goal of preventing,
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan 3
preparing for, and responding to COVID-19, the following proposed projects and
activities will utilize the CDBG-CV3 funds, subject to the CARES Act and emerging
policy from HUD, including program regulations and waivers:
COVID-19 Prevention, Preparedness and Response Services $717,079
CDBG-CV Program Administration $24,000
Total CDBG-CV3 $741,079
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan 4
AP -15 EXPECTED RESOURCES
The CARES Act CDBG-CV3 allocation from HUD is in the amount of $741,079. The
period of performance for CDBG-CV grants under the law is from March 27, 2020 to
September 30, 2022.
Table 1 — Expected Resources
Program
Uses of Funds
Expected Amount Available
Nar
Narrative
Narri
Program
Prior Year
Allocation:
Total:
P tion
Income:
Resources:
CARES Act
Public Services
allocation of
CDBG-
$741,079
$0
$0
$741,079
CDBG to
CV3
Administration
address COVID-
19
Matching Requirements
The Cares Act allocation of CDBG-CV funds does not require a local matching funds
contribution.
Note: Information on this page will also be used to update the 2020-2024 Consolidated
Plan "SP -35 Anticipated Resources" section, adding the CDBG-CV3 allocation shown
in Table 1.
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan 5
AP -20 ANNUAL GOALS AND OBJECTIVES
Table 2 — Goals and Objectives
Goal Name
Time Period
Category
Needs Addressed
Funding
Goal Outcome
Indicator
Non -Housing
Provide public
Goal 1
Public Services
2020-2022
Community
services for low -and
moderate -income
$717,079
30 Persons Assisted
Development
residents
Description: Provide public services and programs that prevent, prepare for, and
respond to COVID-19, which may include comprehensive behavioral and mental
health intervention and outreach, emergency subsistence, mobile crisis services
and other activities to provide education, testing, vaccinations, diagnosis and
treatment, and other materials and supplies necessary to support social distancing,
and promote community health, safety and stability
Goal 2
Program
2020-2022
Program
All
$24,000
Administration
Administration
N/A
Subject to the CARES Act and emerging policy from HUD A portion of CDBG-CV funds
may be used to pay the indirect or direct administrative cost including planning
the use of funds, and processing all required grant administration documents,
monitoring and reporting to HUD in compliance with federal regulations
Note: Information from this page will also be used to update the 2020-2024
Consolidated Plan "SP -45 Strategic Plan Goals" section, adding CDBG-CV3 funds to
the Public Services and Program Administration goals.
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan 6
AP -35 PROJECTS AND ACTIVITIES
To address the goals and objectives identified in Section AP -20, the City of Newport
Beach will invest these funds for the proposed project activities shown in the table
below.
Table 3 —CDBG-CV3 Project and Activities
1
Project Name
COVID-19 Prevention, Preparedness and Response Services
Target Area
Citywide
Goals Supported
Public Services
Needs Addressed
Provide public services for low- and moderate -income residents
Funding
CDBG-CV3: $717,079
Description
Subject to the CARES Act and emerging policy from HUD, including program
regulations and waivers, an estimated portion of the CDBG-CV3 funds will be used
to provide public services and programs that prevent, prepare for, and respond to
COVID-19, which may include comprehensive behavioral and mental health
intervention and outreach, emergency subsistence, mobile crisis services and other
activities to provide education, testing, vaccinations, diagnosis and treatment, and
other materials and supplies necessary to support social distancing, and promote
community health, safety and stability
Target Date
9/30/2022
Accomplishments
Approximately 30 people will benefit from the proposed activities
Location
Citywide
Planned Activities
Prevention, Preparedness and Response to COVD-19 Services (30 people)
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan
2
Project Name
CDBG-CV Program Administration
Target Area
Citywide
Goals Supported
Program Administration, CDBG-CV3
Needs Addressed
All
Funding
CDBG-CV: $24,000
Description
Subject to the CARES Act and emerging policy from HUD, including program
regulations and waivers, a portion of the CDBG-CV3 funds may be used to pay the
indirect or direct administrative cost including planning the use of funds, and
processing all required grant administration documents, monitoring and reporting
to HUD in compliance with federal regulations
Target Date
9/30/2022
Estimate the number
and type of families
that will benefit
N/A — Program Administration
Location
Citywide
Planned Activities
CDBG-CV3 Program Administration $24,000
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan
6 1111
000 1 Ii I
In the implementation of program activities under the CDBG-CV3 Action Plan will
follow all HUD regulations and some or all of the waivers made available by HUD
concerning compliance matters such as program income, forms of investment, and
overall low- and moderate -income benefit (if applicable).
Community Development Block Grant -CV Program (CDBG-CV)
The following tables address HUD regulatory requirements at 24 CFR 92.220(1)(1)
concerning program income and CDBG-CV low- and moderate -income benefit.
Table 4 — Program Income
1. The total amount of program income that will have been received before the
0%
start of the next program year and that has not yet been reprogrammed
0
2. The amount of proceeds from section 108 loan guarantees that will be used
during the year to address the priority needs and specific objectives identified in the
grantee's strategic plan.
0
3. The amount of surplus funds from urban renewal settlements
0
4. The amount of any grant funds returned to the line of credit for which the
planned use has not been included in a prior statement or plan
0
5. The amount of income from float -funded activities
0
Total Program Income:
0
Table 5 — Low- and Moderate -Income Benefit
1. The amount of urgent need activities*
0%
2. The estimated percentage of CDBG funds that will be used for activities that
benefit persons of low- and moderate -income. Overall Benefit - A consecutive
period of one, two or three years may be used to determine that a minimum
overall benefit of 70% of CDBG funds is used to benefit persons of low- and
moderate -income. Specify the years covered that include this Annual Action Plan.
100%
*Note: The amount for Urgent Need activities may change depending on waivers issued by HUD
subsequent to this Action Plan amendment.
CARES Act Second Substantial Amendment to the 2020-2021 Annual Action Plan 9
C®�-�P
�CIpogv
Summary of Public Comments
The draft Second Substantial Amendment to the 2021-21 Annual Action Plan was
made available to the public for review and comment from July 3, 2021 to July 13,
2021.
There were no comments.
A public hearing to receive comments on the draft Second Substantial Amendment to
the 2021-21 Annual Action Plan was held before the Newport Beach City Council on
July 13, 2021.
There were no comments,
�\v P
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2021-64 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 131h day of July, 2021; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Brad Avery, Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom,
Council Member Joy Brenner, Council Member Diane Dixon, Council Member
Will O'Neill
NAYS: None
ABSENT: Council Member Duffy Duffield
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 14th day of July, 2021.
dawl-
O
Leilani I. Brown
City Clerk
Newport Beach, California