Agenda Item A.8
CPMS CONSENT CALENDAR
Meeting Date: November 19, 2024
TO: Mayor and Councilmembers
SUBMITTED BY: JoAnne Plummer, Neighborhood Services Director
PREPARED BY: Cassidy Le Air, Senior Management Analyst
SUBJECT: Initiation of 2025 -2026 Community Development Block Grant (CDBG) and Goleta City Grant Programs
RECOMMENDATION:
Initiate the 2025-2026 application cycle for the Community Development Block Grant (CDBG) and Goleta City Grant Programs.
BACKGROUND:
The Community Development Block Grant (CDBG) Program, managed by the U.S.
Department of Housing and Urban Development (HUD), plays a crucial role in addressing community development needs, particularly benefiting low- to moderate-income persons (LMI). Each year, the City directs the maximum amount of 15% of the total CDBG award towards subrecipient grants for nonprofit organizations that provide essential public services to LMI residents, consistent with CDBG program guidelines. For Fiscal Year (FY) 2024-25, Goleta awarded $43,937 in subrecipient CDBG grants to three nonprofit organizations, the maximum amount allowable by HUD.
In addition to CDBG funds, $250,000 is allocated annually from the General Fund for the Goleta City Grant Program. This program supports nonprofits through competitive funding for various initiatives, including public services, food and nutrition programs, special events, environmental efforts, educational activities, arts, recreational opportunities, and cultural programs that benefit Goleta residents. For FY 2024-25, seventy-eight nonprofits received City Grant awards.
In FY 2014-15, City Council approved combining the CDBG Program and Goleta City Grant Program application cycles. This combined grant process , which utilizes a single application for both programs , has been successfully implemented each year following Council approval. Due to the prescribed timelines of the federal CDBG Program, staff requests to initiate the combined grant application cycle for the upcoming 202 5-26 grant program year on December 12, 2024.
Meeting Date: November 19, 2024
DISCUSSION:
Staff proposes that the CDBG and Goleta City Grant Program application cycle be initiated on December 12, 2024 , with an application deadline of January 31, 202 5. The City will advertise this funding opportunity by releasing a Notice of Funding Availability (NOFA) for both programs. The NOFA will be advertised in the Santa Barbara Independent in English and the El Latino in Spanish. It will also be physically posted on the City’s public notice board in front of the entrance to City Hall , made available at the City Hall reception area , and promoted on the City's website . In addition, the NOFA will be emailed directly to prior grant applicants , recipients, and newly interested organizations that have requested to be added to the City’s grant outreach list. Staff will continue to use ZoomGrants, the online grant management system, to manage the grant cycle and accept applications.
Following the application deadline, the CDBG-eligible applications will be reviewed by the Human Services Standing Committee. After their recommendations on CDBG applications are made, staff will disperse the remaining CDBG-eligible applications and the City Grant applications among the designated committees and commissions responsible for reviewing the applications and recommending awards . Funding recommendations will be deliberated in February/March of 202 5, with approval and final award by City Council in early June of 2025. The active grant period of this program cycle begins on July 1, 2025, and ends on June 30, 2026. The following calendar is proposed for the FY 2025-2026 Grant Cycle:
Timeline/Date Activity/Action Item
November 19, 2024 Initiation of 2025-26 CDBG and Goleta City Grant Programs
December 12, 2024 Notice of Funding Availability for CDBG and Goleta City Grant Programs
2nd Week of January 2025 Mandatory Grant Applicant Workshops – Two Sessions, Morning & Evening
January 31, 2025 Applications Due
February – March 2025 Application Review Period – Committee and Commission Meetings for funding recommendations
March 18, 2025
Public Hearing on Needs, Goals, and Funding
Priorities for the 2025-26 CDBG Action Plan and City
Council consideration of the Human Services
Committee’s funding recommendations for CDBG
March 20, 2025 - April 21, 2025 Public review period for FY 2025-26 CDBG Action Plan
May 6, 2025 City Council approval of 2025-26 CDBG Action Plan June 2025 Final funding recommendations and City Council award of City Grants
Meeting Date: November 19, 2024
At the October 22, 2024, Human Services Committee meeting, the requirement for the applicants to attend a mandatory grant applicant workshop was discussed and supported.
Following the committee’s feedback, staff will hold two mandatory pre-application workshops during the second week of January. Having the workshop mandatory is meant to improve application quality and efficiencies during evaluation, enhance engagement, clarify expectations, and ensure alignment with the program’s goals and criteria.
GOLETA STRATEGIC PLAN:
City-Wide Strategy: 2.1 - Provide community development for neighborhoods and social welfare assistance for disadvantaged and/or marginalized groups. City-Wide Strategy: 2.2 - Support programs that enhance quality of life in the Goleta community such as recreation, public safety, human services, and cultural arts.
FISCAL IMPACTS:
For FY 2025-26, the City Grants contribution amount from the General Fund is proposed to remain at $250,000. If City Council does not approve or modifies the General Fund allocation in the upcoming budget cycle, staff will adjust the program budget accordingly.
The total CDBG allocation from HUD for FY 2024 -25 was $ 292,918, making $43,937 available for CDBG public service grants (15% of the total award). For FY 2025-26, staff estimates the allocation will be the same for budgeting purposes. HUD has yet to announce the CDBG allocations for FY 2025-26. Once the information is available, staff will incorporate the amount awarded by HUD into the final grant agreements and budget.
ALTERNATIVES:
The City Council may choose to change the dates of the NOFA application period, including the duration and deadline. Staff recommends proceeding with the grant cycle schedule as proposed to ensure that funding recommendations for the CDBG program are adopted in time for inclusion in the 2025-26 Action Plan, which is due to HUD by May 15, 2025.
LEGAL REVIEW BY: Megan Garibaldi, City Attorney
APPROVED BY: Robert Nisbet, City Manager