BACKGROUND:
The Community Development Block Grant (CDBG) program, funding awarded from U.S. Department of Housing and Urban Development (HUD), allows Cathedral City to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and improving community facilities and services, principally for low-to-moderate (low-mod) income individuals.
As an entitlement city, Cathedral City receives annual entitlement funds to address the priority needs of the community which are outlined in the 5-Year Consolidated Plan (Con Plan). Within the Con Plan is the Annual Action Plan (AAP), identifying how CDBG funds will be allocated for the upcoming fiscal year as part of the Con Plan objectives.
At the City Council Meeting on June 22, 2022, the City Council approved the FY 2022- 2027 Con Plan, which included broad priority needs and subcategory needs. The City Council wanted to select versatile priority needs such that, should an unforeseen priority need arise during the lifespan of the Con Plan, the need could still be addressed with CDBG funds. At this same meeting, the City Council approved the FY 2022-2023 AAP, which included Administration, Public Services, and Public Improvements.
On February 27, 2023, HUD informed the City the FY 2023-2024 CDBG allocation is $569,557, a reduction of $46,062 from the City’s FY 2022-2023 CDBG allocation. The next steps include a City Staff presentation of the proposed CDBG FY 2023-2024 AAP and the proposed schedule, including notices and public hearings, to comply with HUD requirements and approve the AAP.
DISCUSSION:
At this City Council meeting, City Staff will be introducing the FY 2023-2024 AAP for review. The presentation on the AAP will include discussion on allocations for Program Administration and Public Improvements. The FY 2023-2024 CDBG allocation amount is $569,557.
Cathedral City CDBG Program FY 2023-24
Typically, the AAP includes allocations for Program Administration, Public Services and Public Improvements. Due to limited CDBG funding available, City Staff is proposing for the FY 2023-2024 and FY 2024-2025 General Fund to fund at minimum $85,434 for Public Services per fiscal year. This will provide CDBG funds for Program Administration and additional funding for Public Improvements. The proposed FY 2023- 2024 allocations are as follows:
ADMINISTRATIVE (≤20%) FUNDING
Total Funding Allocated $ 113,911
PUBLIC SERVICES (≤15%) FUNDING
Total Funding Allocated $ -
PUBLIC IMPROVEMENTS (>80%) FUNDING
Via De Anza Street Improvements Project, Phase III $ 445,646 Sidewalk Repair Assistance Program $ 10,000
Total Funding Allocated $ 455,646
TOTAL FUNDING $ 569,557
Public Improvements: The portion of the CDBG allocation that can be used for Public Improvements is not capped and in the above scenario is shown as $455,646. As in the past years, this funding would be used to fund a Public Improvement Project within a low-mod area designated by HUD, and the Sidewalk Repair Assistance Program.
The FY 2021-2022 Program designated the Via De Anza Street Improvements Project, Phase I, to be completed utilizing the $436,357 Public Improvements entitlement. The FY 2022-2023 AAP Public Improvements entitlements allocated $387,119 to the Via De Anza Street Improvements Project - Phase II, and allocated $15,000 to establish and initiate a Sidewalk Repair Assistance Program.
For the FY 2023-2024 AAP, Staff is proposing Public Improvement entitlements to use $445,646 for Via De Anza Street Improvements Project Phase III, and $10,000 to continue providing the Sidewalk Repair Assistance Program.
Please note a reduction in the amount of $5,000 is proposed for the Sidewalk Repair Assistance Program for the FY 2023-2024. This reduction is based on the minimal responses to this program offered to residents of Low-Mod Income Areas of the City as designated by HUD.
Schedule: The following schedule for study, review and approval of the FY 2023-2024 AAP is proposed to maintain compliance with HUD:
•April 12, 2023, City Council Meeting:
oIntroduction of the FY 2023-2024 AAP including Program Administration and Public Improvements.
•April 14, 2023:
oPosting of the 14-day notice for public comments on the AAP. •April 28, 2023:
oEnd posting of the 14-day notice for public comments on the AAP. •May 10, 2023, City Council Meeting:
oPublic Hearing for the approval of the AAP.
In summary, at tonight’s City Council Meeting, Staff is requesting the City Council review, discuss and provide direction to Staff to proceed with the proposed FY 2022- 2023 Annual Action Plan (AAP).
FISCAL IMPACT:
At this time, this item has no fiscal impact. Please note, if any funds remain from the FY 2022-2023 AAP, these can be reprogrammed into the FY 2023-2024 AAP at a later date via an Administrative or Substantial Amendment.