Agenda Item No. 7
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: April 8, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Public Hearing Regarding the Closeout of State Community Development Block Grant Contract 20-CDBG-12014
RECOMMENDATION
Receive a report summarizing the accomplishments performed under the State Community Development Block Grant Agreement 20-CDBG-12014; 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 provide decent housing, suitable living environments, and economic opportunities to low- and moderate-income families. 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.
The City falls within the “non-entitlement” program which is administered by the State Department of Housing and Community Development (HCD) and where the City can apply for funding under a competitive application process. In 2013 the City started to apply under the non-entitlement program and has since received grant awards for the following uses:
Waterline Improvement Project (2013, 2017, 2020) $5,900,000 Subsistence Payments/Eviction Prevention Program (2013, 2017, 2020) $840,000 Security Deposits/Rapid Rehousing Program (2013, 2017, 2020) $303,000 Childcare Training Program (2020 Coronavirus) $51,000
Warming Center Operation Program (2020 Coronavirus) $163,000 Homeless Services Program (2020 Coronavirus) $256,000
Homeless Shelter Operation Program (2022) $500,000
Planning/Technical Studies (2013, 2017)* $200,000
Total $8,200,000
* Includes Housing Element Update, Economic Development Study, Senior Center Feasibility Study On March 21, HCD staff informed the City that the application submitted on March 1 for Ramona Garden Park Improvements Phases 1 and 2 for $3.3 million was being recommended for approval.
In the event that City is awarded the funding, the total above would increase to $11.5 million.
Staff Report: CDBG Contract Closeout Page 2
April 8, 2024
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. On January 21, 2020, HCD published a Notice of Funding Availability (NOFA) for 2020 CDBG funds. Subsequently, the Council authorized an application for a Subsistence Payment Program administered by 5Cities Homeless Coalition (5CHC). The City was awarded $371,083 for the program, and HCD issued contract 20- CDBG-12014 on April 6, 2021.
However, as a result of 2017 CDBG program funds being extended due to the implementation of the Emergency Rental Assistance Program (ERAP), the awarded funds were not utilized until October 2022. Between October 2022 and March 2024, $144,484.06 was expended for up to 90 days of rental assistance to low-income families who suffered financial hardship and were not able to pay rent. 5CHC assisted 20 households totaling 55 individuals with these funds. $226,599 was not utilized due to difficulty meeting eligibility requirements with this funding to be disencumbered and returned to HCD.
FISCAL IMPACT
There is no fiscal impact to the City’s operating budget from this action. Unexpended CDBG funds will be returned to HCD.
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-12014 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 Tribune and New Times on March 28, 2024, 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.