County 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: County of Sacramento………………………………………………………………………....1 Purpose of the Plan………………………………………………………………………………………………………2 County of Sacramento Supervisors Districts and Low/Moderate Income Areas……….4 Focus of the Plan………………………………………………………………………………………………………….5 Citizen Participation and Planning Process………………………………………………………………….5 Priority Needs and Strategies………………………………………………………………………………………8 Housing Needs and Strategies…………………………………………………………………………………….9 Homeless Needs and Strategies…………………………………………………………………………….….10 Community Development Needs and Strategies……………………………………………………….12 Funding to Implement the Plan………………………………………………………………………………….13 Evaluation of Past Performance………………………………………………………………………………….13 Introduction: County of Sacramento The County of Sacramento (County) is the eighth most populated county in the State, consisting of urbanized neighborhoods, suburban cities, and rural communities (see Figure 1). The range of issues confronting the County is as diverse as its residents. The County encompasses approximately 994 square miles in the middle of the 400-mile long Central Valley, which is California’s prime agricultural region. According to the Department of Finance’s 2007 population estimates, the County has a population of over 1.4 million residents, of whom over 657,000 live in the Urban County area.1 The Urban County consists of the cities of Folsom, Galt, and Isleton, and the unincorporated communities of the County. The diverse population is also accompanied by divergent needs to help attain personal, educational, employment, recreational, housing, and other goals. The County is struggling to balance limitations on available resources and the need to address some very critical issues including: severe shortage of 1 California Department of Finance Demographic Research Unit, City/County Population Estimates, 2007. Bellview Park Serna Village Bellview Park affordable housing, homelessness, aging infrastructure and community facilities, inadequate services, and underemployment. A segment of the population faces increasingly challenging issues as the regional economy continues to grow and the housing costs continue to rise faster than local incomes. 2 The use of the term “County” represents the Urban County and incorporated cities with population over 50,000 that are “entitled” to receive Community Planning and Development (CPD) funds directly from HUD. These jurisdictions are called entitlement jurisdictions. Incorporated cities not qualified as entitlement jurisdictions may “participate” in the CPD programs through the County, provided that the combined population of the county unincorporated area and the participating jurisdictions exceeds 200,000. If the population threshold is met, the participating jurisdictions and the county unincorporated area are treated as an entitlement jurisdiction called the “Urban County” and entitled to receive CPD directly from HUD. The Sacramento Urban County includes the cities of Folsom, Galt, and Isleton, and County unincorporated areas even though Folsom and Galt now meet the 50,000 population threshold. They have Cooperation Agreements with the County. 3 Federal programs covered by the Consolidated Plan are: Community Development Block Grant (CDBG); HOME Investment Partnerships (HOME); Emergency Shelter Grant (ESG); American Dream Downpayment Initiative (ADDI). In addition, the City of Sacramento receives Housing Opportunities for Persons with AIDS (HOPWA) funds on behalf of the County of Sacramento. Cover photos clockwise: North Highlands Town Square; Locke Property Transfer Ceremony; Bellview Park; Deterding Community Center and Pathway; Fruitridge Park Waterslide; ; El Parque Street Light 4 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. The Urban County2 receives funds each year from the federal government for housing and community development activities.3 These funds are intended to meet priority needs locally identified by the County. To receive these federal funds, the County 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 must also demonstrate how the County 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.4 The following page shows the County Supervisor Districts and the low and moderate income areas that are the principal target for activities funded from the various entitlement programs. 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. Figure 1: County of Sacramento Supervisors Districts • To provide a suitable living environment through safer, more livable neighborhoods, greater integration of low- and moderate-income residents throughout the County, 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 four 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. American Dream Downpayment Initiative (ADDI): The ADDI program provides downpayment and closing cost assistance to 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. 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 County. SHRA sought first to identify potential needs, services gaps and key issues on which to focus the community outreach process. The County of Sacramento encourages community participation in the development of the five-year Consolidated Plan. With focused starting points of issues and needs, an extensive community outreach program was implemented. Sacramento Housing and Redevelopment Agency (SHRA) was responsible for coordinating the citizen participation process for the Sacramento Urban County Consolidated Plan. Community meetings and the availability of the Resident Survey were published at community and senior centers, public libraries, and on the SHRA and County 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 the Urban County residents could provide input for the Consolidated Plan. Four focus group meetings were held for the County technical advisory committee to the Plan, service providers, economic development stakeholders, the County Public Works Department, and parks and recreation agencies. These meetings were held to solicit input regarding housing and community development needs and priorities. (See page nine in the County’s Consolidated Plan for location and dates.) • Community meetings were held throughout the Urban County, where participants were introduced to the Consolidated Plan process and asked to discuss community needs. Four community meetings were conducted between June and August 2006 throughout the Urban County to gather information and solicit input regarding community needs and priorities. (The locations and dates of the meetings are presented on page 10 of the County 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.cityofsacramento.org/webtech/shra-survey/. A survey form (see Attachment C in the Consolidated Plan) was prepared in five languages (English, Spanish, Chinese, Vietnamese, and Russian) and widely distributed throughout the Urban County. A total of 2,488 surveys were received (2,094 surveys were completed and returned to SHRA and 394 surveys were completed online). Specifically, 966 surveys were received from Urban County residents, based on ZIP Code information provided by the respondents. Another 183 completed surveys did not provide Zip Code information, and these surveys were tabulated with those received from Urban County residents, yielding a total of 1,149 surveys that were analyzed for the Urban County. • 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 (Attachment C of the County Consolidated Plan). 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. A list of agencies that attended the focus group meetings and those that returned the survey is provided in Attachment C of the County Consolidated Plan. Resident Survey results indicated that the top three community needs include crime awareness and prevention; and youth services and facilities. Comments received from the community 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, and persons with disabilities, and economic development. Using a scoring where 3 represents the highest need, the highest rated specific needs for Urban County residents are presented in the following table. Top Ten Specifics Needs for Urban County Respondents Specific Need Category Score Crime Awareness/Prevention Community Services 2.48 Youth Services Community Services 2.31 Youth Centers Community Facilities 2.30 Homeownership Assistance Housing 2.27 Employment/Life Skills Training for the Homeless Homeless Facilities and Services 2.26 Senior Services Community Services 2.25 Mental Health Services for the Homeless Homeless Facilities and Services 2.24 Services for the Disabled Community Services 2.23 Emergency Shelters Homeless Facilities and Services 2.23 Transportation Community Services 2.22 Note: This table represents the top ten community services needs in the County as identified by residents. Due to limitations in funding, only 15 percent of CDBG funds may be allocated to community serices. 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 County 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 County 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, lower-income families, the homeless and persons threatened with homelessness, the elderly (especially frail elderly), and persons with disabilities. This priority can be achieved through a combination of: • 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; • Education and technical skills that allow individuals to obtain jobs paying self- sufficiency wages. The County, by focusing on these overall priorities, 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 County’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 homelessness within ten years; • Programs that promote economic development and create jobs and that increase the job skills level of potential employees; and Supportive services that increase the ability of seniors, persons with disabil The Plan requires the County to specifically address needs and proposed strategie 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 of the County median income or lower. Given the current market conditions therein homeownership costs remain high, as well as funding limitations, the County 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). Priority Housing Needs: • Provide housing rehabilitation and repair assistance to lower-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 Urban County: • 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/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 Homebuyer Program: This program provides low-and moderate-income, first-time homebuyers with downpayment and closing cost assistance on home purchases. The County 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 County of Sacramento. These programs will include hosing 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: • Housing Element – The County’s Planning and Community Development Department and SHRA will continue to implement programs contained in the County’s Housing Element related to affordable housing, including the review of residential development plans containing five or more units, collection of fees where applicable, development agreements in which developers propose building affordable units or land dedication, selection of affordable developers for dedicated sites, and the development process for affordable housing on these sites. • Affordable Housing Ordinance – The County’s Housing Element, as implemented through the Affordable Housing Ordinance, requires 15 percent of housing units constructed in new growth areas to be affordable to very low-income through moderate-income households (based on state definitions of very low-, low-, and moderate-income). 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 also uses HOME program funds to provide gap financing, and is an issuer of mortgage revenue bonds. SHRA and the County continue efforts to reduce local government and housing development costs. 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 (all the cities within the County are included). According to the 2007 Continuum of Care application, that the Sacramento County Department of Human Assistance makes to HUD, 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. Volunteers of America Site (VOA) 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.communitycouncil.org/homelessplan/ for further information. The Sacramento City and County Ten-Year Plan to End Chronic Homelessness (2006– 2016) incorporates the goals of the Continuum of Care application 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 Continuum of Care identifies the following strategies for addressing homeless needs: Strategies • Create new permanent housing beds for chronically homeless persons; • 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; VOA Administration Area • 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 accessibility improvements. • Economic Development: commercial rehabilitation assistance primarily along the older commercial corridors and includes interior and faηade improvements for commercial buildings, mixed use facilities and historic structures. • Community Services: senior services, youth services, job training and placement services, information and referral services, and fair housing services. CDBG funds permit the use of only 15 percent of funds towards public services. There is an ongoing gap within the County, 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 their ability to function independently and productively. In addition, there is a need to link access to supportive services to affordable and appropriate 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 im (See Attachment F of the County Consolidated Plan for Several potential funding sources have been identified to implement the strategies contained in Federal funds covered under the Funds provided under other HUD programs, the Department of Commerce, the Federal Emergency State funds provided under various programs of the California Department of Housing and Community Development and the California Housing F State and fed certificates; • Tax-exempt bond proceeds; County Redevelopment Agency tax increment funds moderate-income set-asi • County General Fund. One of the main obstacles to meeting community needs is inadequate resources foprograms that could address these needs. Although California voters approved dedicated funding for various groups, other state and federal funding sources housing and commun 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, and ESG. These tables summari ls nclude: • Develop, preserve, provide, and maintain affordable housing; • Revitalize the low- and moderate-income neighborhoods with various infrastructure impr • Provide assistance to various public services, including homeless, youth, and senior programs. HUD implemented this ongoing performance evaluation process to assess productivity, cost effectiveness, and the impact of projects and programs in Countneighborhoods. SHRA prepares th strategies. Through the monitoring of performance measures, staff is able to idoperational improvements, resource allocation issues, and policy questions to baddressed in the upcoming year.