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HomeMy WebLinkAbout2025.08.21 PC Meeting PacketAGENDA PLANNING COMMISSION MEETING City Hall - Council Chambers 525 North Third Avenue Pasco, Washington THURSDAY, AUGUST 21, 2025 6:30 PM This meeting is broadcast live on PSC-TV Channel 191 on Charter Cable and streamed at www.pasco-wa.com/psctvlive. Audio equipment available for the hearing impaired; contact staff for assistance. Please silence your cell phones. Thank you. I. CALL TO ORDER II. PLEDGE OF ALLEGENCE III. ROLL CALL: Declaration of Quorum IV. WELCOME AND ANNOUNCEMENTS V. APPROVAL OF MINUTES • Meeting Minutes from July 17, 2025, meeting VI. OLD BUSINESS • 2026 Community Development Block Grant (CDBG) Program Allocation and Annual Work Plan- MF#BGAP2025-003 • 2026 HOME Investment Partnerships (HOME) Program Allocation and Annual Work Plan- MF#BGAP2025-004 • Project Updates: o Transportation System Master Plan o Regional Climate Planning/GHG Plan o Energy Resilience Study VII. PUBLIC HEARINGS None VIII. WORKSHOP None IX. OTHER BUSINESS None X. ADJOURNMENT PLANNING COMMISSION MEETING MINUTES City Hall - Council Chambers 525 North Third Avenue Pasco, Washington THURSDAY, JULY 17, 2025 6:30 PM Page 1 of 5 CALL TO ORDER City of Pasco Planning Commission meeting was called to order at 6:30 p.m., by Chair Cochran. PLEDGE OF ALLEGIANCE Chair Cochran led the Pledge of Allegiance. ROLL CALL Commissioners Present: Austin Crawford, Pat Jones, Rob Waites, Dana Crutchfield, Jay Hendler, and Jerry Cochran, a quorum was declared. Commissioners Excused: Rosa Torres, Kim Lehrman, Rachel Teel Staff Present: C&ED Director Haylie Miller, C&ED Deputy Director Craig Raymond, CDBG Administrator Kristin Webb, and Administrative Assistant II Carmen Patrick DECLARATIONS Chair Cochran asked if there were any Planning Commission members who have a declaration at this time regarding any of the items on the agenda.  No declarations were heard. Chair Cochran asked if anyone in the audience objected to any Planning Commission member hearing any of the items on the agenda.  No declarations were heard. APPROVAL OF MINUTES Commissioner Jones moved to approval of minutes from the May 15, 2025, meeting, seconded by Commissioner Crutchfield, motion passed unanimously. OLD BUSINESS • Comprehensive Plan Kick Off Presentation – Discussion Only presented by Haylie Miller A kickoff meeting was held, during which the idea of a joint meeting between the Planning Commission and City Council was discussed. Feedback was mixed, with limited support for a joint session at this time. It was decided to proceed with regular meetings and revisit the idea if a need arises. Staff will serve as a liaison between the two groups, facilitating communication and check-ins as needed. A joint meeting will be arranged if a majority from both groups later express interest. Commissioner Comments/Questions: Commissioners discussed the mixed feedback regarding a potential joint meeting with Council, noting that even the Mayor was uncertain about the need for formal check-ins. It was agreed that if key issues arise where Council’s position is unclear, check-ins may be appropriate and could take various forms, such as a joint workshop, a Council agenda item, or liaison updates. Commissioner Jones proposed forming a small informal committee of Planning Commissioners, Councilmembers, and Director Miller to facilitate early discussion and feedback without requiring a full joint meeting. Staff confirmed this approach would not violate the Open Public Meetings Act, as it would not involve a quorum. Director Miller will explore the idea further with the new City Manager Page 2 of 5 and Mayor and will continue to serve as liaison between both groups, bringing forward any issues that may warrant broader discussion. PUBLIC HEARINGS • 2026 CDBG Program Allocation presented by Kristin Webb Staff presented the 2026 Community Development Block Grant (CDBG) annual work plan and funding allocation process. The program follows a HUD-approved five-year Consolidated Plan, with annual action plans and a year-end evaluation report (CAPER). Public participation remains a key requirement throughout the process. The 2025–2029 Consolidated Plan focuses on: • Increasing and preserving affordable housing (e.g., down payment assistance, owner-occupied rehabs) • Supporting neighborhood and economic development (e.g., ADA upgrades, facility improvements) • Providing homeless interventions and public services For the 2026 program year, approximately $300,000 is available after subtracting surplus costs and the city received 14 proposals. At the next meeting, staff will present funding recommendations and request the Planning Commission’s input before submitting the plan to Council. Following Council review and action, final allocations will be submitted to HUD. Commissioners were invited to ask questions before the public hearing was opened to hear from applicants. Commissioner Comments/Questions: Commissioners asked regarding applicant guidelines and recommendation process. Staff clarified that while the City generally funds nonprofits, for-profit applicants may still be eligible under the economic development national objective, depending on Council direction. Funding decisions also follow a HUD- mandated scoring system, which will be explained in detail with staff recommendations during the August presentation. Presenters: Upwards Care, Inc. Melanie Faure, Community Impact Manager at Upwards Presented the BOOST program, which supports low- to moderate-income in-home childcare providers in Pasco through coaching and digital tools to help grow their businesses, improve care quality, and expand access. The program is free for providers and families and aims to create jobs and reduce Pasco’s childcare gap, which currently affects nearly half of children under age six. BOOST is scalable, sustainable, and has proven success in other Washington cities. Although Upwards is a for-profit social enterprise, it aligns with public service and economic development goals and is seeking B Corp certification. Upwards requested $128,000 in CDBG funds to support 16 providers, create five teaching assistant jobs, and expand care access for over 200 families. YMCA of the Greater Tri-Cities, Directors Steve Howland and Rob Wilkinson Steve Howland shared the YMCA’s longstanding partnership with the City of Pasco, operating after-school and soccer programs at the Martin Luther King Center for over 40 years. After the departure of a previous nonprofit partner, the City began assisting financially to sustain the programs. The after-school program offers a safe environment with recreation and academic support, while the competitive soccer program runs 44 weeks per year and has contributed to youth pursuing higher education. Page 3 of 5 Rob Wilkinson provided an update on the YMCA’s soccer program. While summer attendance has dipped to 20–25 youth per day (from 40–50 during the school year), this decline is typical for the season. The program remains low-cost and offers financial assistance, ensuring accessibility without compromising competitiveness. Participation has grown significantly, from 1,500 youth in 2023 to a projected 2,500 in 2025, aided by access to the new A Street Soccer Complex. Rob thanked the City for its support, which helps keep the program affordable for families. The Arc of Tri-Cities, Sue Pederson Sue Pederson, with over 20 years at the Arc of Tri-Cities, shared the personal impact of the organization’s programs on her son and highlighted the services supported by City funding. The Therapeutic Recreation programs include the nine-week Partners & Pals summer camp (serving over 300 youth, with Pasco being the largest site), the Voyager program for young adults with intellectual disabilities and autism, and Adult Recreation offering year-round social events for approximately 1,000 individuals. Events include monthly dances (e.g., Halloween Dance and Fall Ball at CBC), trips, and social activities that provide safe, inclusive environments for participants, most of whom are low-income. The Arc relies on over 300 volunteers and expressed deep appreciation for the City’s ongoing support. Boys & Girls Club of Benton & Franklin Counties, Elizabeth McLaughlin, Chief Development Officer Elizabeth McLaughlin presented a $30,000 funding request to enhance teen programming at the Pasco Clubhouse located at 801 N. 18th Avenue. The funds would support workforce readiness, academic enrichment, and leadership development for low-income teens. Programs aim to address challenges such as poverty, academic struggles, and exposure to crime by providing a safe, structured, and supportive environment. The Pasco Clubhouse serves hundreds of teens annually, offering services like tutoring, college and career prep, life skills training, and intramural sports. The program aligns with HUD and Pasco’s priorities for youth in underserved areas. McLaughlin emphasized the Club’s long-standing presence, growing participation, and capacity to manage grant compliance. Columbia Industries DBA Columbia Ability Alliance, Kim Peirret, Chief Operating Officer Kim Peirret presented a request for CDBG funding to support their Community Center, which serves adults with intellectual and developmental disabilities—25% of whom are Pasco residents. The Center provides life skills training, social engagement, educational outings, creative arts, and structured daily routines to promote independence and community inclusion. CAA also emphasizes the importance of respite care for caregivers, helping prevent burnout and supporting long-term in-home care. Funding would be used to provide scholarships for clients who are private pay and need assistance to access services. As community demand increases, scholarships help ensure continued access and promote an inclusive environment. CAA expressed appreciation for the City’s consideration. Tri-County Partners Habitat for Humanity, Jeff Richardson Executive Director and Noah Dixon Grant Coordinator A representative presented a proposal to reinstate a home repair program focused on safety, accessibility, weatherization, and energy efficiency for low- to moderate-income homeowners in Pasco. Repairs would include ramps, stairs, walkways, siding, roof and window repairs, and bathroom modifications to support aging in place and family needs. The program would serve owner-occupied, modest homes within Pasco, targeting households earning below 80% of the area median income (AMI). Assistance would be offered through 0% interest loans tailored to each homeowner's financial situation, creating a revolving loan fund for future repairs. The program aims to Page 4 of 5 preserve existing affordable housing stock and reduce housing cost burdens. Examples of past successful repairs were provided via handouts. Other Applicants: City of Pasco-Parks & Recreation Department 1. PKS Equipment, requesting funds to replace aging kitchen equipment. 2. Peanuts Park North, requesting funds to enhance the north side of the park across from PSK, including upgrade to lighting, paving, additional trees and benches. 3. ADA Improvements-Playground Equipment, to better serve individuals with disabilities. City of Pasco-Community & Economic Development 1. Code Enforcement Officer, funding. 2. Façade Improvement Program supports exterior upgrades for local businesses. 3. Chip Minor Rehab Program, assist with owner-occupied home repairs. 4. Section 108-Debt Payment, mandatory repayment from CDBG funds. 5. Program Administration, standard costs associated with managing CDBG programs. Next Steps: • August 21- Planning Commission Action • TBD- City Council Workshop • TBD- City Council Action • Update Allocation for final submission for HUD WORSHOP • Comprehensive Plan Public Engagement and Outreach Plan presented by Haylie Miller Haylie Miller presented an overview of the Comprehensive Plan engagement strategy, which aims to guide inclusive community participation through plan adoption in Fall 2026. The plan emphasizes equity, with a focus on reaching both English and Spanish-speaking residents—targeting 50% Spanish participation—and engaging a broad range of stakeholders and non-city agencies. It also seeks to build public understanding of the Comprehensive Plan and the City's responsibilities under the Growth Management Act. The engagement strategy is grounded in language equity, inclusive outreach, community education, and phased implementation. The four engagement phases span from May 2025 to November 2026, beginning with education and awareness and progressing through survey efforts, public feedback, and final plan adoption. Key tactics include connecting with the public at existing events, offering online and hybrid engagement formats, ensuring multilingual access, and using creative outreach tools such as flyers, signage, social media, and a centralized landing page. Outreach will focus on a diverse audience, including residents, youth, seniors, Spanish speakers, housing providers, developers, non-city agencies, and advocacy groups. Metrics for success include 25% engagement in Spanish, broad stakeholder representation, and digital participation reaching at least 10% of the population. Staff will continue to provide updates as the process advances. • Countywide Planning Policies (CWPPs) presented by Haylie Miller Haylie Miller briefed the Planning Commission on proposed updates to the Countywide Planning Policies (CWPPs), outlining major changes and requesting feedback. No formal action was required. Originally adopted in 1993 and last updated in 2019, the CWPPs are mandated by the Growth Management Act (RCW 36.70A) to guide coordination between Franklin County and the cities of Pasco, Connell, Mesa, and Kahlotus, ensuring consistency in Comprehensive Plans. Page 5 of 5 The update supports the 2025 GMA periodic review and incorporates 2020 Census data, recent state legislation related to housing and climate, and revised Urban Growth Area criteria. Draft policy themes focus on coordinated growth management, housing affordability, transportation planning, climate resilience, infrastructure and fiscal impacts, interlocal cooperation, and public and tribal engagement. Planning Commission feedback will be forwarded to the Board of County Commissioners for consideration during a public hearing and resolution process. The adopted CWPPs will inform the 2025 Comprehensive Plan updates for jurisdictions countywide. OTHER BUSINESS • iPads Staff presented the option for Planning Commissioners to transition from printed meeting packets to iPads, following the model used by other City boards. While the shift to a paperless system is a long-term goal aimed at improving departmental efficiency, staff recognized that some members may prefer to continue using paper. Commissioners interested in participating in a trial run with iPads were invited to express their interest, with the intent to begin with a small group before expanding the program. The topic will be revisited at a future meeting for further discussion and feedback. ADJOURNMENT Chair Cochran stated with no other business, I recommend a motion to adjourn. Commissioner Jones made a motion to adjourn, seconded by Commissioner Crutchfield, motion carried unanimously. Meeting adjourned at 8:25 pm. YouTube link to watch full meeting: https://www.youtube.com/watch?v=v9Kd33hriX4 Respectfully submitted, Carmen Patrick, Administrative Assistant II Community & Economic Development Department REPORT TO PLANNING COMMISSION City Hall – 525 North Third Avenue THURSDAY, AUGUST 21, 2025 6:30 PM 1 To: Planning Commission From: Kristin Webb, Block Grant Administrator Subject: 2026 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ALLOCATION (MF#BGAP2025-003) Requests for Funding Attached for your review and consideration are the CDBG Fund and Proposal Summaries relating to our Community Development Block Grant Program for program year 2026. Fourteen (14) requests for funds were submitted totaling $1,292,000. The Applicants presented their proposals at the Planning Commission on July 17, 2025. Background The Community Development Block Grant (CDBG) Program provides annual grants on a formula basis to state, cities, and counties to develop viable urban communities by providing decent housing and suitable living environment, and by expanding economic opportunities principally for low-to-moderate income persons. Criteria Staff identified a criterion to align with current Council goals, the 2025-2029 Tri-Cities Consortium Consolidated plan, and whether the applicants’ projects meet the intent of the CDBG/HUD mission. Council goals: Quality of life, Financial Sustainability, Community Transportation Network, Community Safety, Economic Vitality, and Community Identity Tri-Cities Consortium Consolidated plan: Increase and Preserve Affordable Housing, Community, Neighborhood and Economic Development, Homeless Interventions and Public Services CDBG/HUD Mission: Develop viable urban communities by providing decent housing and suitable living environment, and by expanding economic opportunities principally for low-to-moderate income persons. Estimated Funds Available It is estimated that the 2026 annual entitlement grant will be $650,672 based on the award for program year 2025. There is always some question regarding actual funding levels approved by Congress. Actual available funding for these FY 2026 activities will remain in question until the early part of the year when the CDBG allocation is made by Congressional Resolution. If funding levels are lower than estimated or eliminated the city will need to consider several options, including a voluntary or proportionate reduction of allocation, possible inclusions in the 2026 city general fund budget requests. If funding levels are higher than estimated, activity funding will be reallocated in accordance with the contingency plan according to the greatest need. Public Service Cap HUD regulations state that the amount of CDBG Funds obligated within a program year to support public service activities may not exceed 15% of the combined total of the entitlement plus the prior year’s program income. Based on the estimated entitlement of $677,540 the maximum available for public service activities 2 in 2026 is $97,601. Current requests for public services total $202,000. Planning & Administration Cap HUD regulations state that the amount of CDBG Funds obligated within a program year to support planning and administration activities may not exceed 20% of the combined total of the entitlement plus the current year’s program income. For 2026, the estimated entitlement of $650,672 makes the maximum available for planning and administration $131,304. Current requests for planning and administration total $130,000. Staff recommends a maximum of $130,000 for planning and administration (20%) due to the additional burden for HOME grant administration and project delivery. Recommendation After discussions and staff committee evaluation, it is recommended that the activities set forth in option 1, 2, or 3 would best meet City Council Goals and the Tri-Cities Consortium Consolidated Plan and be most effective in carrying out the objectives for the city in 2026. Your review and consideration for recommendations to the City Council would be appreciated. Motion I move the Planning Commission forward recommendations as presented Option 1, 2, 3 (or amended) to City Council Workshop for Consideration. Attachments Spreadsheet staff recommendations- Options 1, 2, and 3 2026 CDBG Fund Summary BGAP2025-003 Planning Commission Meeting Proposals-Recommendations OPTION 1 PJID LOCID RECIPIENT ACTIVITY / AGENCY NAME NonCDBG Match Agency Requested Staff Recommend Activity GoalStrat Obj Risk Priority 1 1 City of Pasco-Community & Economic Development CDBG Program Administration 130,000.00 $130,000.00 Admin & Planning All 0-Low All 2 2 YMCA of the Greater Tri-Cities YMCA Martin Luther King Community Center Recreation Program 25,000.00 25,000.00 $10,000.00 Public Service 1 3-Low B 2 3 The Arc of the Tri-Cities Arc Therapeutic Recreation Scholarship 30,000.00 9,000.00 $3,000.00 Public Service 1 3-Low B 2 4 Boys & Girls Club of Benton and Franklin Counties Pasco Clubhouse Teen Program Expansion 30,000.00 $15,000.00 Public Service 1 3-Low B 2 5 Columbia Industries DBA Columbia Ability Alliance Community Center Recreational Scholarships 5,000.00 10,000.00 $10,000.00 Public Service 1 6-Med B 2 6 Upwards Care, Inc.Boost 27,243.00 128,000.00 Public Service 3 9- Med C 3 7 City of Pasco- Parks & Recreation Department PSK Equipment 216,500.00 50,000.00 $25,000.00 Economic Opportunties 3 2- Low C 3 8 City of Pasco-Community & Economic Development Façade Improvement Program 25,000.00 $25,000.00 Economic Opportunties 3 6-Med C 4 9 Tri-County Partners Habitat for Humanity Pasco Critical Home Repairs 58,334.00 100,000.00 Housing 2 6-Med A 4 10 City of Pasco-Community & Economic Development CHIP Minor Rehab Program 125,000.00 $50,000.00 Housing 1 5-Med A 5 11 City of Pasco- Parks & Recreation Department Peanuts Park North Refurbishment 300,000.00 100,000.00 Public Facilities 3 5-Med C 5 12 City of Pasco- Parks & Recreation Department ADA Improvements- Playground Equipment 0.00 100,000.00 $62,500.00 Publlic Facilities 3 5-Med C 6 13 City of Pasco-Community & Economic Development Code Enforcement Officers 90,000.00 210,000.00 $70,000.00 Code Enforcement 1 0-Low A 8 14 City of Pasco-Community & Economic Development Section 108-Debt Repayment 250,000.00 250,000.00 Debt Payment N/A 752,077.00 1,292,000.00 650,500.00 0.00 2025 Estimated Entitlement 650,672$ $131,134 20% CAP ADMIN CDBG Prior year & Program Income $97,601 15% CAP PUBLIC SERVICES CDBG Funds Available (Entitlement, Prior Year & Program Income)650,672$ Proposals Received 1,292,000$ SURPLUS/DEFICIT (641,328)$ 8/12/2025 2026 CDBG Fund Summary BGAP2025-003 Planning Commission Meeting Proposals-Recommendations OPTION 2 PJID LOCID RECIPIENT ACTIVITY / AGENCY NAME NonCDBG Match Agency Requested Staff Recommend Activity GoalStrat Obj Risk Priority 1 1 City of Pasco-Community & Economic Development CDBG Program Administration 130,000.00 $130,000.00 Admin & Planning All 0-Low All 2 2 YMCA of the Greater Tri-Cities YMCA Martin Luther King Community Center Recreation Program 25,000.00 25,000.00 Public Service 1 3-Low B 2 3 The Arc of the Tri-Cities Arc Therapeutic Recreation Scholarship 30,000.00 9,000.00 Public Service 1 3-Low B 2 4 Boys & Girls Club of Benton and Franklin Counties Pasco Clubhouse Teen Program Expansion 30,000.00 Public Service 1 3-Low B 2 5 Columbia Industries DBA Columbia Ability Alliance Community Center Recreational Scholarships 5,000.00 10,000.00 Public Service 1 6-Med B 2 6 Upwards Care, Inc.Boost 27,243.00 128,000.00 Public Service 3 9- Med C 3 7 City of Pasco- Parks & Recreation Department PSK Equipment 216,500.00 50,000.00 $25,000.00 Economic Opportunties 3 2- Low C 3 8 City of Pasco-Community & Economic Development Façade Improvement Program 25,000.00 $25,000.00 Economic Opportunties 3 6-Med C 4 9 Tri-County Partners Habitat for Humanity Pasco Critical Home Repairs 58,334.00 100,000.00 Housing 2 6-Med A 4 10 City of Pasco-Community & Economic Development CHIP Minor Rehab Program 125,000.00 $50,000.00 Housing 1 5-Med A 5 11 City of Pasco- Parks & Recreation Department Peanuts Park North Refurbishment 300,000.00 100,000.00 Public Facilities 3 5-Med C 5 12 City of Pasco- Parks & Recreation Department ADA Improvements- Playground Equipment 0.00 100,000.00 $100,000.00 Publlic Facilities 3 5-Med C 6 13 City of Pasco-Community & Economic Development Code Enforcement Officers 90,000.00 210,000.00 $70,000.00 Code Enforcement 1 0-Low A 8 14 City of Pasco-Community & Economic Development Section 108-Debt Repayment 250,000.00 250,000.00 Debt Payment N/A 752,077.00 1,292,000.00 650,000.00 0.00 2025 Estimated Entitlement 650,672$ $131,134 20% CAP ADMIN CDBG Prior year & Program Income $97,601 15% CAP PUBLIC SERVICES CDBG Funds Available (Entitlement, Prior Year & Program Income)650,672$ Proposals Received 1,292,000$ SURPLUS/DEFICIT (641,328)$ 8/12/2025 2026 CDBG Fund Summary BGAP2025-003 Planning Commission Meeting Proposals-Recommendations OPTION 3 PJID LOCID RECIPIENT ACTIVITY / AGENCY NAME NonCDBG Match Agency Requested Staff Recommend Activity GoalStrat Obj Risk Priority 1 1 City of Pasco-Community & Economic Development CDBG Program Administration 130,000.00 $130,000.00 Admin & Planning All 0-Low All 2 2 YMCA of the Greater Tri-Cities YMCA Martin Luther King Community Center Recreation Program 25,000.00 25,000.00 $10,000.00 Public Service 1 3-Low B 2 3 The Arc of the Tri-Cities Arc Therapeutic Recreation Scholarship 30,000.00 9,000.00 Public Service 1 3-Low B 2 4 Boys & Girls Club of Benton and Franklin Counties Pasco Clubhouse Teen Program Expansion 30,000.00 $15,000.00 Public Service 1 3-Low B 2 5 Columbia Industries DBA Columbia Ability Alliance Community Center Recreational Scholarships 5,000.00 10,000.00 Public Service 1 6-Med B 2 6 Upwards Care, Inc.Boost 27,243.00 128,000.00 Public Service 3 9- Med C 3 7 City of Pasco- Parks & Recreation Department PSK Equipment 216,500.00 50,000.00 $25,000.00 Economic Opportunties 3 2- Low C 3 8 City of Pasco-Community & Economic Development Façade Improvement Program 25,000.00 $25,000.00 Economic Opportunties 3 6-Med C 4 9 Tri-County Partners Habitat for Humanity Pasco Critical Home Repairs 58,334.00 100,000.00 Housing 2 6-Med A 4 10 City of Pasco-Community & Economic Development CHIP Minor Rehab Program 125,000.00 $70,000.00 Housing 1 5-Med A 5 11 City of Pasco- Parks & Recreation Department Peanuts Park North Refurbishment 300,000.00 100,000.00 $5,000.00 Public Facilities 3 5-Med C 5 12 City of Pasco- Parks & Recreation Department ADA Improvements- Playground Equipment 0.00 100,000.00 $50,000.00 Publlic Facilities 3 5-Med C 6 13 City of Pasco-Community & Economic Development Code Enforcement Officers 90,000.00 210,000.00 $70,000.00 Code Enforcement 1 0-Low A 8 14 City of Pasco-Community & Economic Development Section 108-Debt Repayment 250,000.00 250,000.00 Debt Payment N/A 752,077.00 1,292,000.00 650,000.00 0.00 2025 Estimated Entitlement 650,672$ $131,134 20% CAP ADMIN CDBG Prior year & Program Income $97,601 15% CAP PUBLIC SERVICES CDBG Funds Available (Entitlement, Prior Year & Program Income)650,672$ Proposals Received 1,292,000$ SURPLUS/DEFICIT (641,328)$ 8/12/2025 REPORT TO PLANNING COMMISSION City Hall – 525 North Third Avenue THURSDAY, AUGUST 21, 2025 6:30 PM 1 To: Planning Commission From: Kristin Webb, Block Grant Administrator Subject: 2026 HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM ALLOCATION AND ANNUAL WORK PLAN (MF#BGAP2025-004) Background Pasco entered into a HOME Consortium Agreement with Richland and Kennewick in 1996 making the City eligible for Federal HOME funds. The Agreement will expire in December 2025, the 2026- 2028 Agreement was just approved by HUD and will need council approval. Each year an annual action plan is required to be prepared and submitted to HUD for use of estimated funds for the following program year. Estimated Funds Available It is estimated that the 2025 annual entitlement grant to the HOME Consortium will be $652,569. Each member city is allocated an equal share of the entitlement after 10% Set-Aside for Administration, and 15% Set-Aside for Community Housing Development Organizations (CHDO). Pasco’s share of the entitlement is estimated to be $163,000 when the remaining funds are split equally between the three cities. HOME Program income estimated in 2025 is $100,000 and may be used for Down Payment Assistance, Tenant Based Rental Assistance, Owner Occupied Rehab, or an Eligible CHDO Project depending on need. These estimates are based on the 2024 HOME Allocation. There is always some question regarding actual funding levels approved by Congress. Actual available funding for these FY 2026 activities will remain in question until the early part of the year when the HOME allocation is made by Congressional Resolution and an amendment to the Annual Action Plan may be necessary. If funding levels are lower than estimated, activity funding may need to be reallocated accordingly. Planning & Administration HUD regulations state that the amount of HOME Funds obligated within a program year to support planning and administration activities may not exceed 10% of the entitlement. This is awarded to Richland annually as the Lead Agency of the HOME Consortium to manage all activities. Member cities are provided funds for planning and administration from 10% of program income received from completed projects within their jurisdiction. CHDO Set-Aside Each year a minimum of 15% of the entitlement grant must be set-aside to help Community Housing Development Organizations (CHDO) to add to the permanent affordable housing stock. The CHDO set-aside funds may be combined with program income for a development project that will be selected through a competitive RFP process. Proposed Activities HOME funds are based on need and income eligibility and may be used anywhere within the city limits, however, neighborhoods designated as priority by Pasco City Council received first consideration. Funding is targeted within low-moderate income census tracts (201, 202, 203 and 204). If HOME funds cannot be applied to those areas, then they are used as needed within the 2 Pasco City limits for the benefit of eligible low-moderate income families. Funds may be reallocated between programs to meet community needs. 2026 Funding Source Budget Entitlement & Estimated Program Income $263,000 2026 Proposed Activities Program Administration $10,000 Down Payment Assistance Program $10,000 Tenant Based Rental Assistance Program $121,500 Rehabilitation/Acquisition $121,500 $263,000 Recommendations After discussions and staff evaluation, it is recommended that anticipated 2026 HOME entitlement funds be allocated to the First Time Homebuyer Down Payment Assistance Program, Tenant Based Rental Assistance Program and Owner-Occupied Rehabilitation. The activities set forth above would best meet the City’s Consolidated Plan and be most effective in carrying out the objectives for the City in 2026. If conditions of the housing market make it difficult to use funds as planned, Pasco may consider joining forces with Kennewick and Richland to allocate unused funds for CHDO acquisition and/or infrastructure for low-income rental housing projects as permitted in the interlocal agreement. Your review and recommendation to the City Council would be appreciated. Motion I move the Planning Commission forward the recommendations as presented (or amended) to the City Council Workshop for Consideration.