To: Sonoma County Board of Supervisors and Sonoma County Board of Commissioners
Department or Agency Name(s): Sonoma County Community Development Commission
Staff Name and Phone Number: Martha Cheever, 565-7521; Felicity Gasser, 565-7507
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Designation of Signatories for the Conduct of Banking Business and Resolution for Receipt of State CARES Act Emergency Solutions Grant funding and Amendment of the FY 2019-20 Action Plan to include CARES ACT Allocation of CDBG and Federal ESG.
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Recommended Action:
Recommended action
A) Board of Commissioners: Adopt a resolution of the Sonoma County Community Development Commission to change designated signatories for the conduct of the Commission’s banking business.
B) Board of Commissioners: Adopt resolution for approval of CARES Act State ESG funding enabling the Interim Executive Director or her designee to approve acceptance of funding.
C) Board of Supervisors and Board of Commissioners: Adopt a resolution amending the 2019-2020 One Year Action Plan and Citizen Participation Plan.
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Executive Summary:
Approval of this item will authorize the Commission to change designated signatories on the Commission’s Exchange Bank and West America Bank accounts. This will allow the Commission to continue to conduct banking business to pay Housing Authority client rental subsidies and operational expenses of Village Green II, the Commission’s 34 unit affordable senior housing complex. This item also approves resolutions to authorize the Interim Executive Director of the Community Development Commission to enter into agreements to receive State emergency funding to address homelessness and at-risk of homelessness due to the COVID-19 emergency.
By approving the U.S. Department of Housing and Urban Development (HUD) 2015 Consolidated Plan and subsequent One Year Action Plans, including the most recent annual plan for FY 2019-20, the Board of Supervisors (Board) authorized the use of CDBG, HOME, and ESG funds, along with the committed leverage of non-federal resources for the five year period from 2015-2020 to meet community priorities. The County set priorities in the areas of affordable housing, homelessness and community development. HUD is awarding additional CDBG and ESG funds through the CARES Act to supplement the existing 2019 allocation and help address community needs arising out of the impacts of COVID-19. Commission staff in conjunction with Health Services are currently assessing the highest and best use of these funds. The Commission must submit a Substantial Amendment to the 2019-2020 Action Plan to authorize receipt and use of this additional funding. The Citizen Participation Plan must also be amended to account for waivers granted by HUD to shorten the minimum noticing requirements and allow for expedited approval of amendments to these plans for the rest of the year as needed.
Discussion:
Since its inception in 1984, the Sonoma County Community Development Commission (and Housing Authority) has utilized the services of local banking institutions for the receipt and distribution of grant and subsidy funds from the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture. The Commission currently has banking accounts with Exchange Bank and West America Bank used primarily to pay monthly rental subsidies for Housing Authority clients and operational expenses of Village Green II, as well as an account at the Bank of NY Mellon, which holds the funds for the Non-Housing Successor Agency.
Other Commission funds are held with the County’s Auditor-Controller-Treasurer-Tax Collector.
Two signatures are required for all banking transactions. Due to management changes, it is necessary to designate new staff to sign checks and bank documents, make deposits, and conduct the Commission’s banking business. The attached resolution designates Barbie Robinson, Interim Executive Director; Tina Rivera, Assistant Director; and Martha Cheever, Housing Authority Manager as the three authorized signatories for the conduct of the Commission’s banking business at Exchange Bank, West America Bank, and Bank of NY Mellon.
On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act or the “CARES Act”. The Act identified additional funding for the Emergency Solutions Grant (ESG) Program to support preparation for, and response to, the community impacts of the COVID-19 pandemic. The distribution plan of the U.S. Department of Housing and Urban Development (HUD) for the additional funding includes multiple phases: an initial phase that would allow for quick access to funding necessary to address the immediate crisis resulting from the rising pandemic, as well as later phases that would support post-pandemic community recovery. Home Sonoma County (The Continuum of Care for Santa Rosa/Petaluma/Sonoma County) is tentatively slated to receive $791,000 in ESG-CV funds from the State of California’s share of CARES Act funding. This amount is subject to change before finalization, which is why the attached resolution contains a higher amount.
The County is receiving funds direct from the Department of Housing and Urban Development through the CARES Act to supplement existing Consolidated Planning grant programs. In order to spend this funding, the Commission must prepare and submit a Substantial Amendment to the 2019-2020 One Year Action Plan to take into account the additional funds. Sonoma County has been allocated $1,109,159 in CDBG-CV funds and $564,000 in Federal ESG. Uses for these supplemental funds will come out of joint planning efforts of the Community Development Commission and Department of Health Services. A Notice of Funding Availability and/or Requests for Proposals will be released subsequent the award to solicit proposals that present opportunities for the highest and best use of these funds in response to the COVID-19 emergency. Concurrently, the Citizen Participation Plan, a document outlining the Commission’s public participation requirements regarding changes to Consolidated Plan documents per HUD regulations, has also been amended to account for waivers granted by HUD to shorten the minimum required comment period from 30 days to 5 days. The attached substantial amendment and Citizen Participation Plan underwent a five-day comment period and a public Hearing on June 3, 2020. Both the Community Development Committee and the Cities & Towns Advisory Committee recommended the substantial amendment and the changes to the citizen participation plan for this Board’s approval, on the condition that the proposed uses for CDBG-CV funds be brought back to their Committees for their review and recommendation and to ensure that geographic equity is considered.
Prior Board Actions:
12/10/2019, Agenda Item #3: Commission Resolution No. 18-0265 designating Commission staff to sign checks and documents, make deposits, and conduct the Commission’s business
4/30/2019, Agenda Item #45: Board approved One Year Action Plan for FY2019-2020 with recommendations for funding community development, housing and homelessness projects through HUD
07/10/2018, Agenda Item #9: Commission Resolution No. 18-0265 designating Commission staff to sign checks and documents, make deposits, and conduct the Commission’s business
4/30/2019, Agenda Item #45: FY 2019-2020 Action Plan for Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant Program and all other HOME Sonoma County Funding Awards Program, Emergency Solutions Grant Program and all other HOME Sonoma County Funding Awards
Fiscal Summary
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Expenditures |
FY 19-20 Adopted |
FY20-21 Projected |
FY 21-22 Projected |
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Budgeted Expenses |
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Additional Appropriation Requested |
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Total Expenditures |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
$ |
2,464,159 |
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Fees/Other |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
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$2,464,159 |
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Narrative Explanation of Fiscal Impacts:
Commission and Health staff are working on plans to disburse the funds from the State and Federal allocations of ESG-CV. ESG funds can be used for four primary activities: Street Outreach, Rapid Re-Housing Assistance, Emergency Shelter, and Homelessness Prevention. In addition, ESG funds may be used for associated Homeless Management Information System (HMIS) costs and administrative activities for some subrecipients.
CDBG-CV funds awarded through the Action Plan Amendment may be used to prevent, prepare for, and respond to coronavirus (CDBG-CV grants) and address other community needs. Subsequent approval, the Community Development Commission will release a Notice of Funding Availability to solicit for projects that would meet eligibility from HUD’s guidelines as well as the Commission’s funding policies and prioritize low and moderate income beneficiaries. Community Development Commission and Department of Health staff are working with existing work groups to determine what unfulfilled or under-resourced health and economic needs are faced by low-income and vulnerable populations to determine the priorities for these funds.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
1. Resolution to Authorize Banking Signatories
2. Resolution to receive up to $1,582,000 in State Disaster ESG-CV funds from the State’s CARES Act allocation and to function as Administrative Entity for Administration of the State’s Federal ESG-CV Funds.
3. Resolution to approve Substantial Amendment to FY2019-2020 Action Plan
4. Redlined Updates to Citizen Participation Plan
Related Items “On File” with the Clerk of the Board:
FY 2019-2020 Action Plan