ADMINISTRATIVE REPORT
MEETING DATE: May 28, 2025 AGENDA CATEGORY: Public Hearings TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: May 1, 2025
SUBJECT: CDBG-CV Grant Closeout
Public Hearing to receive comments related to Community Development Block Grant Coronavirus Aid, Relief, and Economic Security Act before Grant Closeout.
RECOMMENDATION:
Staff recommends Council receive and file public comments.
BACKGROUND:
On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in response to the impacts of the COVID-19 pandemic. As an entitlement jurisdiction, the City of Bakersfield received entitlement funding from the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Coronavirus Aid, Relief, and Economic Security Act (CDBG-CV).
In the first round of CDBG -CV, Bakersfield received $2,272,347 in CDBG -CV entitlement funding. During the first round, applicants could receive aid for federally defined “activities” to address impacts from COVID-19 on families, businesses, and sensitive communities. The City funded four activities: Small Business Assistance Loans, Start -Up Business Expansion Grants for Micro -businesses, Small Business Technical Assistance Program, and Senior Services Operations.
The State of California received approxima tely $90 million in CARES Act funds that were distributed in multiple rounds by the California Department of Housing and Community Development (HCD) CDBG -CV program. HCD awarded the City of Bakersfield $4,400,000 in non-entitlement CDBG-CV2 Homekey funds for the Housing Authority of Kern County’s Milestone project, a multi-phase rehabilitation/modernization of a motel located at 1622 Union Avenue in downtown Bakersfield.
In the third round, CDBG -CV3, Bakersfield received $2,532,071 in CDBG -CV entitlement funding. During this round, applicants could receive funding for new or previously funded federally defined “activities” to address the impacts of COVID -19. The City increased funding for Small Business Assistance Loans, Start - up Business Expansion Grants f or Micro-businesses, Small Business Technical Assistance Program, and Senior Services Operations. Funding was provided for new activities, including the Community Action Partnership of Kern (CAPK) Food Bank Expansion and The Mission at Kern County Cooling Unit Replacement.
All funding identified has now been expended and reimbursed by HCD and HUD. Included in the activities outlined below is a percentage of funding that was utilized for “grant administration,” which is an allowable cost that was reimbursed by HUD. These funds were used to pay for City staff time, consultant time, and public hearing notices.
A public notice was published in the Bakersfield Californian and on the City of Bakersfield Economic and
Community Development Department website on May 9, 2025 , to accept community input regarding expenditures and accomplishments of the funding before the official close-out of the CDBG-CV grants. To date, no comments have been received. The City will submit final close-out documents to HCD before the fiscal year ends on June 30, 2025, or as directed by HCD. The table below lists the contract, subrecipient, and award amount between all CDBG-CV rounds.
Project Title and Description Funding Source & Amount
Bakersfield Senior Center
Senior Services/Operations in response to the COVID‐19 pandemic, new programs including training for seniors to become familiar with their smartphones, laptops, tablets etc. and a home delivered meals program to help serve the vulnerable clientele were added serving over 20,000 seniors.
CDBG-CV - $25,000
CDBG-CV3 - $60,000
Access Plus Capital Small Business Assistance
Provided 72 small businesses (less than 25 employees) funding for short-term working capital assistance such as rent, payroll, utilities, services & supplies, retaining or creating 260 full-time equivalent jobs.
CDBG-CV/3- $1,161,776.08
Microenterprise Business Grants
Provided 68 new or existing Micro-Business (Owner + 4 or less employees) start-up or expansion grants to address the COVID-19 pandemic.
CDBG-CV - $70,000
CDBG-CV3 - $226,700
Mission Community Services Small Business Technical Assistance Mentorship, technical assistance and initial loan/grant underwriting was provided to 50 small businesses serving 1,262 individuals.
CDBG-CV - $87,347
CDBG-CV3 - $110,000
Mission at Kern Cooling Units
Purchase and installation of 2 new commercial evaporative coolers to provide 776 guests with a safe and healthy environment during the summer months as the Mission at Kern County is a designated cooling station for the city.
CDBG-CV3 - $24,360
Community Action Partnership of Kern Food Bank Expansion Increased food storage warehouse by 40,000 Sq. ft. providing space needed to source and distribute larger quantities of food in a safer and more efficient way. Over 100,000 people served.
CDBG-CV/3 - $3,032,190.86
Milestone Housing Project
Rehabilitation/modernization of 79 units located at 1622 Union Avenue in downtown Bakersfield, converting the property into permanent supportive housing for people who are experiencing homelessness or at risk of experiencing homelessness.
CDBG-CV2 - $4,400,000
Grant Administration CDBG-CV3 - $7,044.06
FISCAL IMPACT:
All CDBG funds utilized under these contracts were 100% grant funded. No other funding was utilized that would impact general funds.
COUNCIL GOAL:
Community Character & Quality of Life
Innovative and Efficient City Government
ATTACHMENT: None