Title
Chief Administrative Office and Community Development Agency recommending the Board consider the following:
1) Authorize the transfer of the Housing, Community, and Economic Development program, currently staffed with one filled Full Time Equivalent position, from the Chief Administrative Office (CAO), Economic Development division to the Community Development Agency (CDA), Long Range Planning division (LRP), effective immediately upon Board approval; and
2) Adopt and authorize the Chair to sign Resolution 032-2016 reassigning 1.0 filled FTE Department Analyst I/II position to the CDA-LRP from the CAO’s Economic Development division.
FUNDING: N/A
Body
DEPARTMENT RECOMMENDATION
Chief Administrative Office and the Community Development Agency recommending the Board consider the following:
1) Authorize the transfer of the Housing, Community, and Economic Development (HCED) program, currently staffed with one filled Full Time Equivalent (FTE) position, from the Chief Administrative Office (CAO), Economic Development division to the Community Development Agency (CDA), Long Range Planning division (LRP); and
2) Adopt Resolution XXX-2016 reassigning 1.0 filled FTE Department Analyst I/II personnel allocation to the CDA-LRP from the CAO’s Economic Development division.
DISCUSSION / BACKGROUND
The County’s HCED program is currently housed under the Chief Administrative Office and has been considered a part of the County's Economic Development program, however, the HCED program covers responsibilities, primarily housing related, that are predominantly separate from those efforts under the Economic Development division. The HCED program is primarily funded by Federal Community Development Block Grants (CDBG) administered by the State of California to local jurisdictions. These funds were created by Congress more than 50 years ago to provide local decision makers the flexibility required to address social and economic needs of the communities they serve. The HCED program is currently funded approximately 97% by State/Federal funds and 3% by the County General fund. The program is currenlty staffed with one (1.0) FTE position.
The current HCED position, while housed physically with the Parks and Economic Development divisions, shares minimal work with the aforementioned divisions (generally less than 20%) and provides limited direct support to the Economic Development division. Should the Board choose to authorize moving the program to CDA, it is anticiated that there will be little to no impact on the Parks and Economic Development divisions. Following the proposed transfer, it is anticipated that the HCED and Economic Development programs will continue working collaboratively where advantageous in furthering applicable County related goals/objectives.
The HCED program responsibilities currently include:
• Annual application of CDBG funding following release of State Housing and Community Development (HCD) Notice of Funding Availability
• TIM Fee Offset Program for Affordable Housing and annual monitoring,
• Housing Rehabilitation Loan Program and annual monitoring,
• Homeownership (First-Time Home Buyer) Assistance Loan Program,
• CDBG low-income small business owner training program (training provided by the Sierra Business Council with County staff monitoring eligibility and costs),
• Long term monitoring of previous grant funded and developed affordable multi-family housing projects.
• CDBG small business loan program and annual monitoring,
• Management of Board Policy B-11 - Affordable Housing Fee Structure,
• Ongoing 2013 Housing Element implementation, including:
o tracking and monitoring of affordable housing units;
o assistance with affordable housing development,
o implementation and tracking progress in completing the Housing Element Implementation Programs;
o complete ongoing amendments to ensure compliance with updated state laws; and
o reporting annually to the State.
Should the Board approve the requested program transfer, CAO staff will provide fiscal assistance to assist CDA during the transition period for the remainder of the current Fiscal Year (FY) 2015-16 (ends June 30, 2016).
The intent of restructuring the HCED program into CDA/LRP is to facilitate the following:
• Create long-term stability and succession planning for delivery and management of established programs, while ensuring eligibility for future funding opportunities. The current HCED staff person is the only County employee with a comprehensive understanding of the County’s current HCED function and programs. If HCED is moved to CDA, at least one other staff person would be cross trained on HCED programs, as time permits, to ensure appropriate programmatic support and for succession planning purposes.
• Support and expand housing and infrastructure programs that provide grants to improve and maintain economic competitiveness for targeted housing needs while ensuring that the costs of the programs remain as efficient as possible for the County.
• Properly support development of projects and programs that will achieve goals identified by the Board in the draft three-year Strategic Plan for job creation, moderate workforce housing, infrastructure and public facilities.
• Improve coordination in preparing and submitting applications for grants and other funding opportunities with related departments to achieve the County’s goals (e.g. CalHFA, USDA, Community Investment Fund, Statewide Community Infrastructure Investment Program, Green Building grants, etc.)
• Support stronger correlation with HCED programs and community development as provided for through CDA divisions of Planning, Building, Code Enforcement Services, Transportation, and Environmental Management, while maintaining collaboration with Economic Development and Parks through CDBG funding applications and loan assistance.
• Enhanced support for County residents that utilize and or are supported by HCED programs, while allowing for more flexibility to the County in meeting program mandates.
• Support and expand programs that provide an overall economic benefit to the County though the support of low to moderate-income households and workers.
In addition to meeting the Board’s stated goals, special focus areas under CDA are anticipated to include, but not limited to:
ü Ongoing compliance with state laws and the Housing Element of the County General Plan to ensure eligibility for appropriate funding and grant opportunities,
ü Investment in infrastructure needs to improve and maintain regional competitiveness, and
ü Prepare standards and guidelines that support the development for diverse housing needs throughout the County.
The physical relocation of HCED to CDA-LRP will allow for the continuation of work on the Housing Element Implementation programs and reporting. This work is of critical importance for the County to maintain its compliance and to ensure eligibility for ongoing funding and grant opportunities.
HCED Total Program Loan and Grant Application from 1993-2015
ALTERNATIVES
There are several alternatives should the Board choose not to authorize the transfer of the HCED program at this time.
1) Keep the program within the CAO’s office with limited staffing and resources. This alternative may reduce funding eligibility and implementation effectiveness through loss of capacity due to reduced activity; or
2) Discontinue applying for CDBG funds that support Housing Element implementation and the expansion of existing programs. The cost to the General Fund will increase over time, as there will be no new grant funds to charge costs to as required for implementation and ongoing reporting, monitoring and administration activities. In addition should the Board find it appropriate to revive the program in the future, it may require the submittal of applications in multiple funding rounds before the County is awarded since the County lost capacity due to reduced activity. Being able to prove capacity in managing the programs over the long term is an important qualifier for grant awards; or
3) Direct staff to explore additional options for placement of the HCED program.
OTHER AGENCY / DEPARTMENT INVOLVEMENT
Community Development Agency, Economic Development Division, Human Resources Department.
CAO RECOMMENDATION
Chief Administrative Office recommends moving staff’s recommendations to authorize the transfer of the HCED program from the CAO’s office to CDA.
FINANCIAL IMPACT
There is no increased cost associated with transferring this program to the CDA. However, it is anticipated that housing the HCED program in CDA may result in the future receipt of increased State/Federal funding that will lead to increased funding/availability of funds. No budget amendment is recommended at this time, as the current recommendation is to transfer the program, in concept, and reassign the responbilities to the CDA. Additional budget changes will be included with the FY 2016-17 budget in order to clearly align program costs, revenues, and potential personnel allocation adjustments reflected as a result of this programmatic transfer.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board to obtain the Board Chair’s signature on two (2) originals of Resolution XXX-2016, and
2) Clerk to forward one (1) original executed Resolution to the CAO’s office for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Craig Schmollinger, Principal Administrative Analyst
Chief Administrative Office