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 our community 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.
DISCUSSION:
At this City Council meeting, city staff will be introducing the FY 2024-2025 AAP for review. The presentation on the AAP will include discussion on allocations for program administration and public improvements. In the previous year, the city received it’s CDBG allocation by the end of February; however, HUD has not provided a timeline for when the city can expect CDBG allocation award in the upcoming fiscal year. The city is expecting approximately $570,000 in funding, similar to the previous fiscal year.
The next steps include a city staff presentation of the proposed CDBG FY 2024-2025 AAP and the proposed schedule, including notices and public hearings to comply with HUD requirements and the approval of the AAP.
Cathedral City CDBG Program FY 2024-25
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 2024-2025 General Fund to fund at minimum the equivalent to 15% of CDBG allocation for public services (similar to what City Council approved on May 24, 2023, for the FY 2023-2024 AAP). The General Fund will fund public services to allow CDBG funds to provide additional funding for public improvements. The proposed FY 2024- 2025 allocations are as follows:
ADMINISTRATIVE (≤20%) FUNDING
Total Funding Allocated $ 114,000
PUBLIC SERVICES (≤15%) FUNDING
Total Funding Allocated $ -
PUBLIC IMPROVEMENTS (>80%) FUNDING
Whitewater Area Street Rehabilitation $ 451,000
Sidewalk Repair Assistance Program $ 5,000
Total Funding Allocated $ 456,000
TOTAL FUNDING $ 570,000
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 $456,000. 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 funded the Via De Anza Street Improvements Project, Phase I, utilizing the $436,357 public improvements entitlement. The FY 2022-2023 AAP public improvements entitlements allocation of $387,119 funded the completion of the Via De Anza Street Improvements Project - Phase II and allocated $15,000 to establish and initiate a Sidewalk Repair Assistance Program. The FY 2023-2024 AAP public improvements entitlements allocated $445,646 toward the, soon to be underway, Via De Anza Street Improvements Project - Phase III and also allocated $10,000 to the Sidewalk Repair Assistance Program.
For the FY 2024-2025 AAP, Staff is proposing public improvement entitlements to fund $451,000 for the Whitewater Area Street Rehabilitation Project and $5,000 to continue providing funding for 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 2024-2025. This reduction is based on the minimal responses to this program offered to residents within the HUD designated low-mod income areas of the city.
Schedule: The following schedule for study, review and approval of the FY 2024-2025 AAP is proposed to maintain compliance with HUD:
•March 27, 2024, City Council meeting:
oIntroduction of the FY 2024-2025 AAP including program administration and public improvements.
•March 31, 2024:
oPosting of the 30-day notice for public comments on the AAP. •April 30, 2024:
oEnd posting of the 30-day notice for public comments on the AAP. •May 8, 2024, City Council meeting:
oPublic Hearing for the approval of the AAP.
In summary, at tonight’s City Council meeting, staff is requesting City Council review, discuss and provide direction to staff to proceed with the proposed FY 2024-2025 Annual Action Plan (AAP).
FISCAL IMPACT:
At this time, this item has no fiscal impact. Please note, if any funds remain from the FY 2023-2024 AAP, those funds can be reprogrammed into the FY 2024-2025 AAP later via an administrative or substantial amendment.