City of Sacramento 2008–2012 Consolidated Plan Executive Summary Lead Agency Sacramento Housing and Redevelopment Agency 630 I Street Sacramento, CA 95814 Table of Contents Introduction: City of Sacramento ………………………………………………………………………….1 City Council Districts and Low/Moderate Income Areas ……………………………………….3 Purpose of the Plan …………………………………………………………………………………………………4 Focus of the Plan……………………………………………………………………………………………………..5 Citizen Participation and Planning Process………………..……………………………………………5 Priority Needs and Strategies………………………………………………………………………………….7 Housing Needs and Strategies…………………………………………………………………………………8 Homeless Needs and Strategies…………………………………………………………………………… 10 Community Development Needs and Strategies…………………………………………………..12 Funding to Implement the Plan………………………………………………………………………………13 Evaluation of Past Performance……………………………………………………………………..………14 Introduction: City of Sacramento The City of Sacramento (City) has a population of over 460,000 people1 and comprises an increasingly diverse array of residents. They come from different socioeconomic, racial, ethnic, and cultural backgrounds and offer a rich fabric to the community. The diverse population has divergent needs to help attain personal, educational, employment, recreational, housing, and other goals. The City is also a regional employment center, offering a range of economic and employment opportunities. However, as one of the oldest cities in the State, the City contains some neighborhoods that face deteriorating infrastructure and facilities, aging housing stock, and economic establishments that may have become obsolete or marginally viable. As the regional economy continues to grow and housing costs continue to rise relative to incomes, a segment of the population faces increasingly challenging issues such as inadequate and unaffordable housing, low-income and poverty, deteriorating neighborhood conditions and quality of living, and limited access to services and facilities. The City receives funds each year from the federal government for housing and community development activities.2 These funds are intended to meet priority needs locally identified by the City. To receive these federal funds, the City must submit a strategic plan—the Consolidated Plan—every five years to the U.S. Department of Housing and Urban Development (HUD) that identifies local needs and how these needs will be addressed. The Consolidated Plan (Plan) must also demonstrate how 1 California Department of Finance Demographic Research Unit, City/County Population Estimates, 2007. 2 Federal programs covered by the Consolidated Plan are: Community Development Block Grant (CDBG); HOME Investment Partnerships (HOME); American Dream Downpayment Initiative (ADDI); Emergency Shelter Grant (ESG); and Housing Opportunities for Persons with AIDS (HOPWA). Dixieanne Tot Lot the City will meet national goals set by the U.S. Congress to develop viable communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low- and moderate-income.3 3 An “extremely low-income” household earns less than 30 percent of the area median income (AMI). A “low-income” household earns from 30 to 50 percent of AMI. A “moderate-income” household earns from 50 to 80 percent of AMI. “Low- and moderate-income” households, as used in this Consolidated Plan, refer to households at all three income levels mentioned here. In March 2007, the AMI for Sacramento County was $67,200, and the moderate income of a four person household, $53,750. Cover photographs from clockwise: Gardenland Spray Park; Southside Park; HOPWA Home, Rehabilitated Apartment. Ping Yuen Apartments Courtyard at night in Downtown Sacramento The following figure shows the City’s Council Districts and the low-and moderate- income areas that are the principal target for activities funded from the various entitlement programs. Figure 1: City of Sacramento City Council Districts Purpose of the Plan The purpose of the Consolidated Plan is to guide funding decisions in the next five years of specific federal funds. It is guided by three overarching goals that are applied according to a community’s needs. The three overarching goals are: • To provide decent housing by preserving the affordable housing stock, increasing the availability of affordable housing, reducing discriminatory barriers, increasing the supply of supportive housing for those with special needs, and transitioning homeless persons and families into housing. • To provide a suitable living environment through safer, more livable neighborhoods, greater integration of low- and moderate-income residents throughout the City, increased housing opportunities, and reinvestment in deteriorating neighborhoods. • To expand economic opportunities through more jobs paying self-sufficient wages, homeownership opportunities, development activities that promote long-term community viability, and the empowerment of low- and moderate-income persons to achieve self- sufficiency. The five federal funding resources in the 2008–2012 Consolidated Plan are the following: Community Development Block Grant (CDBG): The primary objective of this program is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low- and moderate-income. Funds can be used for a wide array of activities, including: housing rehabilitation, homeownership assistance, lead-based paint detection and removal, construction or rehabilitation of public facilities and infrastructure, removal of architectural barriers, public services, rehabilitation of commercial or industrial buildings, and loans or grants to businesses. HOME Investment Partnership Program (HOME): The HOME program provides federal funds for the development and rehabilitation of affordable rental and ownership housing for low- and moderate-income households. HOME funds can be used for activities that promote affordable rental housing and homeownership by low- and moderate-income households, including reconstruction, moderate or substantial rehabilitation, homebuyer assistance, and tenant-based rental assistance. New Helvetia Playground HOPWA Apartments Del Paso Boulevard Streetscape American Dream Downpayment Initiative (ADDI): The ADDI program provides downpayment and closing cost assistance to low-and moderate-income first-time homebuyers. Emergency Shelter Grant (ESG): The ESG program provides homeless persons with basic shelter and essential supportive services. ESG funds can be used for a variety of activities, including: rehabilitation or remodeling of a building used as a new shelter, operations, and maintenance of a facility, essential supportive services, and homeless prevention. Housing Opportunities for Persons with AIDS (HOPWA): The HOPWA program provides grant funds to design long-term, comprehensive strategies for meeting the housing needs of low- and moderate-income people living with HIV/AIDS. HOPWA funds can be used for acquisition, rehabilitation, or new construction of housing, rental assistance, and related supportive services. HOPWA funds are received by the City of Sacramento. By agreement between the City and County of Sacramento, the County Department of Human Assistance (DHA) administers them. Focus of the Plan As required by the federal government, the identification of needs and the adoption of strategies to address those needs must focus primarily on low- and moderate- income individuals and households. The Consolidated Plan must also address “special-needs” identified by the federal government or locally, such as the needs of the elderly, persons with disabilities, large families, single parents, homeless individuals and families, and persons with HIV/AIDS. Citizen Participation and Planning Process The preparation of the Consolidated Plan began with “in-reach” among public agencies in the City. SHRA sought first to identify potential needs, services gaps and key issues on which to focus the community outreach process. The City of Sacramento encourages broad citizen participation in the development of the five-year Plan. With focused starting points of issues and needs, the Sacramento Housing and Redevelopment Agency (SHRA) next conducted broad citizen participation and outreach on behalf of the City of Sacramento, through neighborhood associations, community groups, public housing resident committees, and other community groups. Community meetings and the availability of the Resident Survey were publicized at community and senior centers, public libraries, and on the SHRA and City websites. They were also advertised public announcements made in newspapers of general circulation. Four primary methods were used to solicit public input: • Focus group meetings were held so that agencies and departments that provide facilities and services to City residents could provide input for the Consolidated Plan. Three focus group meetings were held for a City technical advisory committee to the Plan, service providers, and economic development stakeholders. These meetings were held to solicit input regarding housing and community development needs and priorities. (See page nine in the City Consolidated Plan for location and dates.) • Community meetings were held throughout the City where participants were introduced to the Consolidated Plan process and asked to discuss community needs. Three community meetings were conducted between June and August 2006 to gather information and solicit input regarding community needs and priorities. (The locations and dates of the meetings are presented on page nine of the City Consolidated Plan.) • Resident Surveys, which assessed housing and community development needs, were distributed at public meetings and public locations and were made available online at http://www.cityof sacramento.org/webtech/shra- survey. A survey form was prepared in five languages; English, Spanish, Chinese, Vietnamese, and Russian widely distributed throughout the City (see Attachment C in the City Consolidated Plan). • A total of 2,488 surveys were received (2,094 surveys were completed and returned to SHRA and 394 surveys were completed online). Of these, 1,339 surveys were received from City of Sacramento residents, based on ZIP Code information provided by the respondents. • A separate Service Provider Survey was prepared and distributed to service providers. In addition to the focus group meetings, service providers were encouraged to provide input via a survey. The Service Provider Survey was designed to allow for open-ended input. Respondents were asked to identify five immediate housing and community needs and note any unmet needs and gaps in the existing service delivery system. Thirteen Service Provider Surveys were returned. The survey, a list of agencies that attended the focus group meetings and those that returned the survey is provided in Attachment C of the City Consolidated Plan. Resident Survey results indicated that the top three community needs include crime awareness and prevention, community services for persons with disabilities, and homeless shelters. Comments received from the community meetings include the need for infrastructure and public facilities improvements, affordable housing, services for special needs groups such as youth at-risk for becoming homeless, seniors, persons with disabilities, and economic development. Using a scoring where three represents the highest need, the highest rated specific needs for City residents are presented below. Specific Need Score Crime Awareness/Prevention 2.56 Homeownership Assistance 2.45 Youth Services 2.38 Job Training and Placement Services 2.36 Employment/Life Skills Training for the Homeless 2.34 Emergency Shelters 2.33 Youth Centers 2.33 Build More Affordable Ownership Housing 2.32 Senior Services 2.31 Emergency Food and Clothing 2.30 Top Ten Specifics Needs for City Respondents Category Community Services Housing Community Services Economic Development Homeless Facilities and Services Homeless Facilities and Services Community Facilities Housing Community Services Homeless Facilities and Services Note: This table represents the top ten community services needs in the City as identified by residents. Due to limitations in funding, only 15 percent of CDBG funds may be allocated to community services. Priority Needs and Strategies The overall priority for these federal funds is to increase self-sufficiency and economic opportunity for lower-income residents and individuals with special needs so that they can achieve a reasonable standard of living. The City of Sacramento is committed to allocating funds that serve the needs of the lowest-income and most disadvantaged residents. Households with incomes less than 50 percent of the area median income, particularly those with extremely low-incomes (less than 30 percent of area median income), are particular priorities. The City has also identified special-needs individuals as among those who face the greatest challenges and who should receive high priority in the expenditure of federal funds, including at-risk children and youth, low-income families, the homeless and persons threatened with homelessness, the elderly (especially frail elderly), and persons with disabilities The followings needs address this priority: • Affordable housing; • Investment in community development activities in lower-income and deteriorating neighborhoods and in facilities that serve lower-income populations; and • Supportive services to maintain independence; Stanford Park Sidewalk and Landscaping Improvements • Education and technical skills that allow individuals to obtain jobs paying self- sufficiency wages. The City, by focusing on these needs, seeks to address community concerns such as: • A need for additional affordable housing to address the growing gap between housing costs and local incomes, which leads to rising rates of overcrowding, overpayment, and substandard housing conditions for the City’s lowest income residents; • Programs that improve community facilities and services, particularly in low- income areas. • A network of shelter, housing, and support services to prevent homelessness, move the homeless to permanent housing and independence, and eliminate chronic homelessness within ten years; • Programs that promote economic development, create jobs, and increase the job skills level of potential employees; and • Supportive services that increase the ability of seniors, persons with disabilities, and others with special needs to live independently and avoid institutions. The Plan requires the City to specifically address needs and proposed strategies in the following three areas: housing, homelessness, and community development. Housing Needs and Strategies High housing costs reduce economic opportunities, access to jobs and services, and the ability of lower-income households, including the elderly and persons with disabilities, to live in the communities and neighborhoods of their choice. The affordability gap results in a concentration of lower-income households in older neighborhoods that have higher levels of substandard housing and overcrowding. HUD and regulatory requirements are restricted to assist households at 80 percent of the County median income or lower. Given the current market conditions therein homeownership costs remain high, as well as funding limitations, the City is continuing to focus its CDBG, HOME and ADDI funds to support activities across the housing spectrum seeking to increase and improve multi-family stock, provide first time homebuyer financing, rehabilitate existing single family housing and provide code enforcement and affirmatively further fair housing (per Attachment D, Housing Needs Table). Phoenix Park Gardenland Spray Park Priority Housing Needs • Provide housing rehabilitation and repair assistance to low-and moderate-income households; • Support acquisition and/or rehabilitation and new construction of multi-family housing; • Increase homeownership opportunities for low-and moderate-income households; and • Promote equal housing opportunity. Strategies SHRA implements the following programs to address priority housing needs in the City: • Multi-Family Housing Lending Program: This program allows SHRA to provide direct, low-interest loans as gap financing to supplement private equity and debt for multi-family housing developments, either through new construction or acquisition and rehabilitation. • Owner Rehabilitation Loans: The program provides financing for home improvements to low-and moderate-income homeowners who wish to improve the livability or utility of the property. • Emergency Repair and Accessibility Grant Program (ERP-A): This program offers grants for home accessibility improvements to handicapped or disabled homeowners or renters and for emergency, health and safety repairs to owners of single-family homes or mobile homes. • Home Assistance and Repair Program for Seniors: This program allows senior homeowners to hire skilled volunteers to repair and fix parts of their homes for increased safety. • First-Time Home Buyer Program: This program provides low-and moderate- income, first-time homebuyers with down payment and closing cost assistance on home purchases. The City also uses CDBG funds for code enforcement and other housing improvement programs. Refer to the Housing Needs Table (Attachment D of the County Consolidated Plan) for priorities and objectives regarding housing needs. The Housing and Community Development Department at SHRA will continue efforts to implement new strategies and strengthen participation of its partners to expand support for affordable housing programs in the City of Sacramento. These programs will include housing and related support services for people transitioning out of homelessness, including implementation of the Ten-Year Plan to End Chronic Homelessness discussed in the next section, as well as services for seniors and youth. Other programs and strategies include: • SRO Strategy – The SRO (Single Room Occupancy) strategy focuses on preservation of existing residential hotels and development of new efficiency apartments to replace inventory lost through conversion or demolition. A request for applications issued in 2006 has resulted in applications from two existing SROs. In addition, SHRA has identified a site to construct at least one new efficiency apartment project of approximately 160 units. Revisions to the City’s SRO ordinance have strengthened protections for tenants in existing SROs that may be closed due to market forces. The ordinance also includes adoption of a “no net loss” policy to stabilize the inventory of available single-room occupancy units within the City. In addition to other sources such as low-income housing tax credits and local redevelopment funds, HOME funding may be used to provide gap financing for SRO rehabilitation or new construction projects. • Housing Element – The City Planning Department and SHRA will initiate work on the City’s Housing Element (July 1, 2008 to June 30, 2013). The Housing Element of the General Plan includes an analysis of existing and projected housing needs; an analysis of potential governmental constraints; a residential land inventory; and housing policies, programs, and quantified objectives to address the City’s housing needs. • Mixed Income Housing Ordinance – The City’s Mixed Income Housing Ordinance requires 15 percent of units constructed in new growth areas to be affordable to low- and very low-income buyers or renters. SHRA reviews and approves affordable housing plans and agreements required under the ordinance. SHRA also provides lower-interest rate gap financing to multi- family housing projects which are developed to meet the ordinance’s requirements. SHRA uses HOME program funds to provide gap financing, as well as its capacity as an issuer of mortgage revenue bonds. Homeless Needs and Strategies The priorities for ending homelessness are based on the recognition that homelessness results from more than just a lack of affordable housing, although providing housing is the ultimate objective. Since homelessness is a regional issue, homeless data is based on countywide statistics rather than statistics for the City alone. However, as the largest City in the region and the center of many of the region’s social services, the City of Sacramento has the largest homeless population in the County of Sacramento. According to the 2007 Continuum of Care application and Homeless Management Information System, an estimated 2,299 people experience homelessness in Sacramento County. Of these, 1,787 are individuals and 482 are persons in families with children. Approximately 35 percent of homeless individuals and 4 percent of homeless persons with children are unsheltered. An estimated 718 people are chronically homeless. The City and County are jointly undertaking implementation of the Ten-Year Plan to End Chronic Homelessness. The Housing and Community Development Department at SHRA provides resources to this. Sacramento’s Ten-Year Plan to End Chronic Homelessness reflects the best practice models from New York, Philadelphia, San Francisco, Portland, and other cities that have successfully implemented Housing First strategies for reducing chronic homelessness. The Ten-Year Plan envisions a system in which public and private agencies work together as a consortium to procure and manage housing, provide central intake services, and deliver support services to clients through a coordinated case management system. Since the Ten-Year Plan was adopted in 2006, an Inter-Agency Council and Policy Board has been formed and begun regular meetings. Ten standing committees have been formed and meet covering a range of Ten-Year Plan implementation issues such as permanent supportive housing, criminal justice and veterans. Three contracts have been executed with community providers to house and serve 114 individuals. A new Central Intake Office opened June 2007 and has screened 68 homeless people. Eleven have been housed and 38 are awaiting new housing placements as they become available. Further, three rental housing projects have been financed and will provide 139 units of permanent supportive housing. Please refer to http://www.community council.org/ homelessplan/ for further information. The Sacramento City and County Ten-Year Plan to End Chronic Homelessness (2006– 2016) incorporates the goals of the Sacramento County Department of Human Assistance application to HUD for a Continuum of Care and lists the following priorities for ending chronic homelessness. Priority Homeless Needs Exhibit 1 of the County of Sacramento’s Continuum of Care application establishes the following homeless priorities to serve homeless individuals and families: • Maintain capacity in emergency shelters; • Provide transitional housing; and • Provide permanent supportive housing. The County’s Continuum of Care identifies the following strategies for addressing homeless needs: Strategies • Create new permanent housing beds for chronically homeless persons; Volunteers of America Site (VOA) • Increase the percentage of homeless persons remaining in permanent housing; • Increase the percentage of homeless persons moving from transitional housing to permanent housing; • Increase the percentage of homeless persons becoming employed; • Ensure that the Continuum of Care has a functional Homelessness Management Information Strategies system; • Provide a transition from the streets or shelters directly into permanent supportive housing for chronically homeless individuals; and • Provide treatment to individuals with chronic substance problems preventing them from obtaining and maintaining permanent housing. Community Development Needs and Strategies Based upon outreach efforts, the following community development needs were determined to have a high priority, and will be an emphasis of CDBG funding: • Public Improvements and Community Facilities: park improvements, youth facilities, community facilities, infrastructure improvements, and handicapped accessibility improvements. • Improvements to neighborhood facilities: including economic development for commercial rehabilitation assistance primarily along older commercial corridors including interior and faηade improvements for commercial buildings, mixed use facilities and historic structures. • Community Services: senior and youth services, job training and placement services, information and referral services, and fair housing services. CDBG regulations permit the use of only 15 percent of annual funds towards public services. Volunteers of America (VOA) Detox Facility Pannell Ball Field Pannell Community Center There is an ongoing gap within the City, in various degrees, in the availability of services across most categories of special need. This includes seniors, at-risk youth, working parents, persons with disabilities, individuals with chronic illness, and persons with other conditions affecting individuals’ ability to function independently and productively. In addition, there is a need to link access to supportive services to affordable housing. More coordination and collaboration is needed between housing providers and service providers. Strategies The Consolidated Plan proposes that the public infrastructure funds be focused strategically on fewer, but larger projects in low-and moderate-income neighborhoods. The goal is to create a concentration of activity for strategic and visible impacts that deliver greater efficiencies and effectuate positive changes within the community. Community services ranked high in the citizen outreach process; however, discretionary funding from CDBG for these services is limited to 15% of the entitlement funding. Other funding categories may be strategically used to meet multiple needs identified under community services. One example is the Emergency Repair and Accessibility Grant Program (ERP-A). It is a housing activity but also serves many disabled and elderly individuals whose needs are specifically identified within the needs study. Furthermore, a public facility or public improvement can sometimes be used to benefit special populations such as a community center serving seniors and youth. Likewise, infrastructure funding can be used for accessibility improvements meeting special needs and those of the broader community. (See Attachment F of the City Consolidated Plan for detailed priorities and objectives regarding community development needs.) Funding to Implement the Plan Several potential funding sources have been identified to implement the strategies contained in the 2008–2012 Consolidated Plan. These sources include, but are not limited to: • Federal funds covered under the Consolidated Plan: CDBG, HOME, ADDI, ESG, and HOPWA; • Funds provided under other HUD programs, the Department of Commerce, the Federal Emergency Management Agency, and other federal agencies; • State funds provided under various programs of the California Department of Housing and Community Development and the California Housing Finance Agency and through voter approved bond funds; • State and federal tax credits and mortgage credit certificates; • Tax-exempt bond proceeds; • City Redevelopment Agency tax increment funds and the low- and moderate- income set-aside from those funds; and • City General Fund. One of the main obstacles to meeting community needs is inadequate resources for programs that could address these needs. Although California voters approved dedicated funding for various groups, other state and federal funding sources for housing and community development programs will remain limited for the foreseeable future. Evaluation of Past Performance SHRA measures performance using the Housing, Homeless and Community Development Needs Tables, Attachments D, E, and F in the Consolidated Plan, which project and measure outputs and outcomes for CDBG, HOME, ADDI, ESG, and HOPWA. These tables summarize key data related to each of the Consolidated Plan goals. These goals include: • Develop, preserve, provide, and maintain affordable housing; • Revitalize the low- and moderate-income neighborhoods with various infrastructure improvements including park, street, sidewalk, and sewer improvements. • Provide assistance through various public services, including homeless, youth, and senior programs; and HUD implemented this ongoing performance evaluation process to assess productivity, cost effectiveness, and the impact of projects and programs in City neighborhoods. SHRA prepares the Consolidated Annual Performance Evaluation and Reporting (CAPER) which captures progress toward meeting needs and achieving strategies. Through the monitoring of performance measures, staff is able to identify operational improvements, resource allocation issues, and policy questions to be addressed in the upcoming year. Overall, SHRA and its partners have been successful in implementing public improvement and community service projects and programs and meeting the objectives established in the previous Consolidated Plan and foresees continued progress through the new Plan.