Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: October 23, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Public Hearing and Resolution Regarding the Closeout of State Community Development Block Grant Coronavirus (CDBG-CV) Contract
RECOMMENDATION
Receive a report summarizing the accomplishments performed under the State Community Development Block Grant Coronavirus (CDBG-CV) Agreement 20-CDBG-CV2-3-00087; conduct a public hearing to solicit citizen input regarding expenditures and accomplishments of the funding received under the contract; and direct staff to proceed with submitting required documents for closeout to the State.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program authorizes the use of funds to assist low- and moderate-income families or aid in the prevention or elimination of slums or blight. There are two types of CDBG programs:
“entitlement” and “non-entitlement”. Metropolitan cities and urban counties are entitled to receive annual grants under the “entitlement” program direct from HUD. Metropolitan cities are principal cities or Metropolitan Areas (MAs) or other cities within MAs that have populations of at least 50,000. Urban Counties are within MAs that have population of 200,000 or more excluding the population of metropolitan cities within their boundaries.
In 2011, the City opted to leave “entitlement” program administered by the County of San Luis Obispo’s Planning and Building Department and participate in the “non-entitlement” program. The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD). The City has applied for funding under a competitive application process.
The City previously received a total of $5.8 million of CDBG funding in 2013, 2017, and 2020 for water line improvements and $1.2 million in funding for Eviction Prevention and Security Deposit programs through successful applications for the non-entitlement program. An additional $417,000 in CDBG-CV (CDBG-Coronavirus) funds was also received in 2021 for Warming Shelter Operations, a Childcare Training Program, and a Homeless Services Program.
In order to officially close out a contract, the City is required to first conduct a public hearing to solicit input regarding expenditures and accomplishments of the funding received under the contract and then submit required documents to HCD.
Staff Report: CDBG Contract Closeout Page 2
October 23, 2023
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. HCD published a Notice of Funding Availability (NOFA) for Community Development Block Grant Coronavirus Aid, Relief, and Economic Security (CDBG-CV) funds. The City was eligible to receive $369,468 based on a formula provided by HCD for rounds 2 and 3 of CV funds and received $113,000 in funds for the operations of the Winter Warming Shelter (Contract 20-CDBG-CV2-3-00087) operated by 5Cities Homeless Coalition (5CHC). During the 2022-23 winter season, the Winter Warming Shelter provided shelter for a total of 58 nights, serving 117 unduplicated persons during the winter months. Staff has submitted final funds requests for all eligible expenses and will be packaging the required closeout documents to initiate the closeout process.
The balance of the CV2-3 funds, $256,468, was designated for a Homeless Services Program, also operated by 5CHC. This program, which expands outreach efforts by 5CHC to address the health and safety challenges related to COVID-19 by providing hotel isolation, testing, transportation, and distribution of PPE and hygiene supplies, is still underway and will continue to operate through Fall 2024 based on the current expenditure rate. Staff will return to the Council for closeout for that particular contract with a complete summary of accomplishments.
FISCAL IMPACT
There is no fiscal impact from this report as the CV2-3 funds were 100% grant funded and have been completely expended.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a public hearing, receive public comment and review the accomplishments performed under the 20-CDBG-CV2-3-00087 agreement; and provide direction for staff to send the HCD required closeout forms and documents; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The public hearing notice was published in the New Times on October 12, 2023, in English and Spanish, as required by HCD. In addition, the notice was also posted on the City Hall bulletin board, City website, and social media accounts. 5Cities Homeless Coalition was also notified of the meeting.