1. Public Hearing: Draft Consolidated Plan for 2005-2010; Draft One-Year Action Plan 2005-2006; Draft Analysis of Impediments to Fair Housing Choice; and, Resumption of Revolving Loan Account Presented to: City Council March 29, 2005

2. BACKGROUND The City of Stockton receives federal funding from Department of Housing & Urban Development (HUD) for the following programs: –Community Development Block Grant (CDBG) –Home Investment Partnership (HOME) –Emergency Shelter Grant (ESG) The following reports must be submitted to receive the funds: –Consolidated Plan (every 5 years) –Annual Action Plan (annually) –Analysis of Impediments to Fair Housing Choice (AI)

3. CONSOLIDATED PLAN The Consolidated Plan is a five-year planning document that shows a strategy for addressing community needs and identifies priority activities. –This draft plan covers FY 2005-06 thru FY 2009-10 November 2004 Con Plan Needs Assessment Hearing

4. CONSOLIDATED PLAN PROCESS Community Needs Assessment Hearing before the Community Development Committee (CDC) Interviews with organizations, agencies and individuals Statistical Analysis of Stockton Identify and consolidate community needs –Identified needs were the same as the previous five years. Coordinate with other agencies to address community needs Plan goals and objectives to address community needs over the next five years

5. HOUSING PRIORITIES Housing Rehabilitation –Neighborhood Improvement Loan/Grant Program –Code Enforcement New Housing Construction Home Buyer Assistance –Down Payment Assistance Program (DAP) Homeless Programs –Assist Shelters with operation and maintenance costs

6. COMMUNITY DEVELOPMENT PRIORITIES Economic Development –Commercial Facade Program –Emergency Grant/Rehab Loan Pool –Downtown Incentive Program Public Improvements –Infrastructure –Public Facilities –Public Services

7. ONE-YEAR ACTION PLAN Identifies annual goals and allocates funding based on the Consolidated Plan –This One-Year Action Plan is for fiscal year 2005-06 Involves citizen participation Activities must be an identified Priority Need and meet a National and Local Objective

8. NATIONAL OBJECTIVES 1.Providing benefits to low and moderate income persons 2.Eliminating slums and blight 3.Meeting an urgent community need

9. LOCAL OBJECTIVES 1.Housing and neighborhood preservation including new housing opportunities 2.Economic development through job retention and creation activities 3.Public facilities and improvements limited to the support of objectives 1 and 2 4.Elimination of blight and blighting elements limited to the support of objectives 1 and 2 5.Special programs offering significant community benefit and in direct support of objectives 1 and 2

10. CITIZEN PARTICIPATION PROCESS A Notice of Funding Availability was published in The Record and mailed to over 135 various agencies and interested groups. A Notice of Funding Availability was published in The Record and mailed to over 135 various agencies and interested groups. A Needs Assessment Hearing was held on November 8, 2004, to obtain citizens input on local needs and open the application process. A Needs Assessment Hearing was held on November 8, 2004, to obtain citizens input on local needs and open the application process. Deadline for submission of all funding request applications was January 5, 2005. Deadline for submission of all funding request applications was January 5, 2005.

11. FUNDING APPLICATIONS 12 Applications for CDBG and ESG funding were received. CDC and staff reviewed the applications for: –Meeting National Objectives –Eligibility –Consistency with the Consolidated Plan –Council-adopted Local Objectives –Organizational capacity and experience

12. FUNDING RECOMMENDATION PROCESS The CDC held 4 meetings to review funding requests and finalized its recommendations for funding on March 3, 2005. Summaries of the application process and status were given in The Week That Was (11/12/04, 12/31/04, 2/18/05, and 3/11/05). Notice of the Public Hearing was published in The Record on March 15, 2005. Tonight’s Public Hearing provides an opportunity for citizens to comment on the draft 2005-06 One-Year Action Plan

13. ENTITLEMENT COMPARISON Program 2004-05 Entitlement 2005-06 Entitlement Percent Change CDBG$5,022,000 $4,772,057 $4,772,057(5.0%) HOME$2,353,529 $2,247,644 $2,247,644(4.5%) ESG ESG$186,592 $183,684 $183,684(1.6%) Total Entitlements $ 7,562,121 $ 7,203,385 (5.0)%

14. CDBG SOURCES 2005-06 New Entitlement $ 4,772,057 Projected Program Income 2005-06 $ 1,169,323 Program Income Carryover 2004-05$ 933,776 Carryover Projects/Funds 2004-05$ 8,565,692 Sharps Lane Villa Repayment$ 30,000 Total CDBG Sources$15,470,848

15. CDBG USES 2005-06 2004-052005-06 Administrative Support Program Delivery Code Enforcement Code Enforcement Housing Program Operation Housing Program Operation Technical Assistance Technical Assistance Housing & Neighborhood Revitalization Neighborhood Improvement Funds (ACT) Neighborhood Improvement Funds (ACT) Emergency Repair Fund Emergency Repair Fund Housing Loan Pool Housing Loan Pool$1,171,109$963,723$1,376,525$212,063$250,000$300,000$2,242,022$1,168,004$1,108,447$1,294,044 $ 96,845 $ 200,000 $ 300,000 $1,751,586

16. CDBG USES 2005-06 (continued) Subrecipients CDC Recommendation + 04-05 Carryover San Joaquin Fair Housing Gtr. Stockton Emergency Food Bank Second Harvest Senior Services Agency Housing Authority of San Joaquin Stockton Shelter for the Homeless New Hope Family Shelter Boys & Girls Club Child Abuse Prevention Council Delta Health Care Ebenezer Econ. Dev. Corporation Small Business Development Center $128,260 + $35,000 $100,000 + $0 $25,000 + $5,000 $39,564 + $0 $100,680 + $0 $66,933 + $0 $0 + $125,000 $0 + $30,000 $0 + $350,000 $0 + $48,134 $0 + $121,708 $0 + $45,628

17. CDBG USES 2005-06 (continued) 2004-052005-06 Cold Weather Shelter Economic Development Program – Facades, Emergency Grant/Rehab Loan Facades, Emergency Grant/Rehab Loan Pool, Downtown Incentive Program Pool, Downtown Incentive Program Debt Service – Section 108 Loan Foreclosure Redevelopment Project Loans Capital Improvement Projects: Airport Way Neighborhood Center Airport Way Neighborhood Center Pock Lane Infrastructure Pock Lane Infrastructure Alley Abandonment Alley Abandonment Projects underway (Gleason, Taft, Van Buskirk) Projects underway (Gleason, Taft, Van Buskirk)$25,000$400,000$1,076,398$362,336$0$250,000*$0$25,000$4,080,454$20,000$529,241$1,171,003$362,336$455,519$1,150,000**$395,000 $25,000 $25,000$4,222,916 TOTAL CDBG USES $14,174,436$15,470,848 * Mid Year Appropriation **New Allocation is $1 Million, includes $150,000 carryover from 2004-05 allocation

18. HOME SOURCES 2005-06 New Entitlement $2,247,644 Projected Program Income 2005-06 $ 888,103 Recaptured Funds $ 181,901 Program Income Carryover $ 217,482 Carryover Projects $6,001,032 American Dream Downpayment Initiative $ 59,514 Total HOME Sources $9,595,676

19. HOME USES 2005-06 2004-052005-06 Administrative Support Program Delivery CHDO 15% Set Aside CHDO Set-Aside Carryover CHDO Set-Aside Carryover American Dream Downpayment (ADDI)** $368,614$430,780$353,029$407,579$192,817$292,054$427,371$337,147$580,278$134,451 Housing and Neighborhood Revitalization Single-Family Housing Pool Single-Family Housing Pool Multi-Family Housing Pool Multi-Family Housing Pool *Winslow Village ($900,133) *Winslow Village ($900,133) *American USA Homes ($82,570) *American USA Homes ($82,570) Rental Rehabilitation Pool Rental Rehabilitation Pool$5,190,362$7,824,375 Down Payment Assistance Program (DAP) Down Payment Assistance Program (DAP)$800,000 Total 2005-06 HOME Uses $7,743,181$9,595,676 *Mid-Year Appropriation**Two Fiscal Years of ADDI were allocated last year

20. ESG SOURCES & USES 2005-06 SOURCES2004-052005-06 ESG Entitlement $186,592$183,684 USES Center for Positive Prevention Alternatives Gospel Center Rescue Mission Haven of Peace Emergency Shelter St. Mary’s Interfaith Dining Room Stockton Shelter for the Homeless Women’s Center of San Joaquin County $ 6,510 $18,376$25,726$55,126$51,452$29,402$15,000$20,000$0*$55,684$63,000$30,000 Total ESG Uses $186,592$183,684 Grant Funds for Stockton’s Homeless Service Providers *Haven of Peace did not submit a funding request application for 2005-06

21. PROPOSED HOUSING PROGRAM REVISIONS (effective 7/1/05) WHY are Revisions needed? Incomes have not kept up with increases in housing prices. In one year, the median home price has increased 26% ($255,000 vs. $322,750). The sales price of homes in Stockton have more than tripled in the last five years. Families can only afford houses at the lower end of the market. These need repairs and most new owners don’t have the funds available.

22. WHAT DO RECENT HOME SALES INDICATE? February Home Sales CITY # SOLD Feb. 2004 Feb. 2005 % CHANGE San Joaquin County 875 $ 275,000 $ 366,500 33.27% Lathrop18 $ 263,000 $ 342,000 30.04% Lodi68 $ 240,000 $ 326,000 35.83% Manteca85 $ 291,250 $ 388,500 33.39% Ripon15 $ 319,000 $ 355,000 11.29% Stockton472 $ 255,000 $ 322,750 26.57% Tracy194 $ 360,000 $ 495,750 37.71% Source: Dataquick.com as of February 2005

23. WHAT IS THE CURRENT SITUATION? A combination of market changes and increases in mortgage interest rates have made the City’s Down Payment Assistance program less accessible to low-income families. The current Down Payment Assistance program continues to limit opportunities for qualified residents.

24. WHAT CHANGE IS PROPOSED? Increase the Down Payment Assistance from a maximum of $50,000 to $60,000 per qualified household. –All other requirements and stipulations of the existing program to remain in effect, including the shared equity at the time of re-sale.

25. ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE (AI) A planning document used to assist the City with identifying barriers to fair housing –The last AI was completed in 1996 Public process –Individual interviews with local agencies –Community workshop in conjunction with CDC meeting –Public Hearing before City Council

26. AI SUMMARY There are potential barriers to low-income people accessing housing. For example: –Limited access to information –Poor credit, insufficient funds –Occupancy restrictions and shortage of large affordable homes in good condition –Gap between housing costs and local incomes –Potential for multi-family zoned land to be developed with single-family homes

27. AI RECOMMENDATIONS Among other actions, the City may do the following: –Promote Down Payment Assistance Program (DAP) –Use the Housing Element to promote housing for all income levels –Support fair housing service providers, credit counseling, etc. –Provide financial assistance for rehabilitation, emergency repairs and correction of code enforcement violations

28. REVOLVING LOAN FUND Currently the CDBG Loan Pool acts as a revolving loan fund: –It’s a place holder for high-priority housing projects. –It allows funds expended on housing projects to be reused on additional housing projects as the money is repaid Establishing the Revolving Loan fund does not change any of the proposed allocations for CDBG funds.

29. COUNCIL ACTION 1. Invite comments from the general public on the Consolidated Plan, One- Year Action Plan and Analysis of Impediments to Fair Housing Choice; 2. Close public input portion of hearing and direct staff to review comments and modify drafts as appropriate;

30. COUNCIL ACTION 3. All comments, technical corrections, and Council directions to staff will be summarized and included in the final Consolidated Plan, One-Year Action Plan, and AI presented on 4/26/05; and, 4. Authorize staff to resume a CDBG Revolving Loan process.

31. NEXT STEPS  The final Consolidated Plan, One-Year Action Plan, and AI will be presented to the Council on April 26, 2005; and  Final Consolidated Plan, One-Year Action Plan, and AI will be submitted to HUD on or about May 13, 2005.