Consent Item 4f
STAFF REPORT
City Council Consent Item
DATE: June 6, 2022
TO: Honorable Mayor and Council Members
FROM: Katey Schmidt, Senior Administrative Assistant
THROUGH: Merritt Perry, City Manager
SUBJECT: 2021 Community Development Block Grant Application STAFF RECOMMENDATION:
Authorize the submission of a 2021 Community Development Block Grant (CDBG) PI Only ADA Barrier Removal Project by adopting Resolution 2022-18.
INTRODUCTION:
The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to states, cities, and counties. These grants serve to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income (LMI) persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended 42 U.S.C. 5301 et seq.
The State Department of Housing and Community Development (HCD) released the Community Development Block Grant (CDBG) NOFA on January 29, 2021 announcing approximately $30 million in federal funds for the 2021 CDBG program. Eligible cities and counties may submit Community Development and Housing applications for CDBG funds under the 2021 NOFA for a maximum per application request of $1,500,000.
The CDBG program requires that each funded activity meet one of the three National Objectives by either principally benefiting low-and moderate-income (LMI) persons, aiding in the prevention or elimination of slums or blight, or meeting a community development need having a particular urgency. LMI Limited Clientele (LMC), as defined by income limits or presumed benefit refers to persons who earn 80 percent or less of HUD Adjusted Median Family Income (HAMFI) for the county of residence. At least 70 percent of the funds awarded must benefit LMI individuals or households.
EXECUTIVE SUMMARY:
On April 5, 2021, staff presented the “City of Fortuna PI Only ADA Barrier Removal Project” for consideration. Sidewalk improvement is an approved CDBG activity and meets the State Objective for LMI person area benefit as at least 51.9 percent of the activity’s beneficiaries are low and Consent Item 4f
moderate income persons. Targeted areas will improve access to public facilities including the Library, City Hall, Rodeo Grounds, and the Bike Park in Newburg Park. The Council requested staff to add additional improvement locations and increase the budget. Additional locations were added and the request for funds was increased to not to exceed $830,000. The CDBG PI Only grant application was submitted on February 9, 2022.
The CDBG PI application process allows for “future receipts” to be included in the project budget.
These future receipts have increased the funding available to $933,893 exceeding the $830,000 funding that was initially approved in Resolution 2021-11. An updated Resolution reflecting the additional funding is required to complete the application process. This will insure the City will stay below the $25,000 program income “cash on-hand” limit to remain eligible for future CDBG NOFA applications.
FINANCIAL IMPACT:
The NOFA allows for grantees to use a total of 17 percent of the allocation for program administration costs. Activity Delivery, costs directly related and necessary to successfully complete a specific project, is covered in the grant award. There is sufficient available Program Income to prepare the CDBG 2021 application. If awarded, an approved CDBG application is 100 percent grant funded, including the costs to administer the grant.
RECOMMENDED ACTION:
Adopt Resolution 2022-18. Consent Agenda vote.
ATTACHMENTS:
Resolution 2022-18, A Resolution of the City Council of the City of Fortuna approving a program income only application for funding and the execution of a grant agreement and any amendments thereto from the 2021 funding year of the State CDBG program.