Agenda Item No. 5
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 11, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Closeout of State Community Development Block Grant Coronavirus (CDBG-CV) Contract 20-CDBG-CV2-3-00077
RECOMMENDATION
Receive a report summarizing the accomplishments performed under the State Community Development Block Grant Coronavirus (CDBG-CV) Agreement 20-CDBG-CV2-3-00077; conduct a public hearing to solicit public 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: “entitlement1
” and “non-entitlement.” The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD).
Beginning in 2013, the City has participated in the “non-entitlement” program where the City can apply for available funding under a competitive application process. The HCD publishes a Notice of Funding Availability (NOFA) for each program year for eligible projects. Since 2013, the City has received grant awards for the following projects:
City Awarded Programs
Ramona Garden Park Rehabilitation Project Phases 1 and 2 (2023A) $3,300,000 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)2 $200,000
Total $11,513,000
1 Metropolitan cities and urban counties are entitled to receive annual grants from HUD under the “entitlement” program. 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 a population of 200,000 or more excluding the population of metropolitan cities within their boundaries.
2 Includes Housing Element Update, Economic Development Study, Senior Center Feasibility Study Staff Report: CDBG-CV Contract Closeout Page 2
February 11, 2025
In order to 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 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 CDBG 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-CV2-300087)3 . Approximately
$256,468 in funds for a Homeless Services Program (Contract 20-CDBG-CV2-3-00077), both operated by the 5Cities Homeless Coalition (5CHC).
The Homeless Services Program expanded 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, food, and hygiene supplies. The funding allowed 5CHC to provide additional services and supplies during their engagement efforts and interactions. The program assisted 1,144 individuals including 602 individuals during outreach efforts and 542 individuals at 5CHC’s navigation center. As a result of the additional engagement provided by this program, 93 were connected to 5CHC's Cabins for Change or Balay Ko on Barca non-congregate shelters, and 45 have been permanently housed.
The program has fully expended the awarded funds, and staff has submitted final funds requests for all eligible expenses and will be packaging the required closeout documents to initiate the closeout process.
FISCAL IMPACT
There is no fiscal impact to the City’s operating budget from this action.
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-CV2-3-00077 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 on January 29, 2025, and New Times on January 30, 2025, 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 on January 29, 2025. 5Cities Homeless Coalition was notified of the meeting. 3 The closeout hearing for the Winter Warming Shelter (Contract 20-CDBG-CV2-3-00087) was held on October 23, 2023. The staff report is available on the City’s website at https://www.grover.org/DocumentCenter/View/14332/Item9_CDBG-closeout-CV2-Warming-Center