Item #10
Date: February 15, 2022
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Community Development Block Grant Program, Potential Applications and Recommendations, and Direction to Staff
Recommendation:
Pass a Motion to 1) open the public hearing and receive public comment regarding the Community Development Block Grant (CDBG) Program and possible activities and projects to be considered for funding under the 2022 Notice of Funding Availability (NOFA) process; and 2) discuss potential applications, consider recommendation, and provide direction for staff to prepare an application.
Background:
The State Department of Housing and Community Development (HCD) will publish a NOFA for the 2022 Non-Entitlement Community Development Block Grant funds in the coming weeks/month. Eligible cities may submit applications for CDBG funds under the NOFA. Over the past several weeks the State CDBG program has provided training on the 2022 CDBG NOFA to review the program parameters of the program. Although the “official” NOFA has not yet been released, to meet the application deadlines and requirements, we are conducting the required outreach and public hearing to determine the highest and best use of the funds for the City.
The City of Marysville anticipates submitting an application under the 2022 NOFA, but first must hold a public hearing to receive public input. The activities under the 2022 CDBG NOFA may include the following up to the maximum of $1,500,000:
• Public Service (maximum grant of $500,000), for up to three services. Examples include childcare, health care, recreation programs, fair housing counseling, drug and alcohol abuse counseling and testing, homeless services, senior services, and nutrition services benefitting low- and moderate-income persons.
• Planning and Technical Assistance (maximum grant of $250,000). The product must show a connection to assisting with an eligible CDBG activity that, if implemented, meets a National Objective. Product(s) are submitted to the State at the time of completion. The grants require a $5,000 cash match to be expended prior to expenditure of CDBG funds. Examples include Item #10
studies, analysis, data gathering, preparation of plans, and identification of action that will implement plans, NEPA and environmental plans.
• Housing Programs (maximum grant of $500,000):
➢ Homeownership Assistance Program: assistance with down-payment or closing costs. ➢ Housing Rehabilitation Program for Single Family Homes: include repairs and improvements of owner-occupied units
• Business Assistance or Microenterprise Assistance (maximum grant of $500,000 for either Business Assistance or Microenterprise Assistance). Examples of Business Assistance include financing of working capital, furniture, equipment, and property repairs/improvements.
Examples of Microenterprise include business training, financing of working capital, furniture, equipment, and property repairs/improvements.
Discussion & Analysis:
The purpose of this public hearing is to solicit ideas from the general public, discuss staff recommendations and provide direction to City staff on potential programs to include in both of the City’s CDBG applications. In the past year the City and departments created a priority list that can be reviewed and discussed, and other considerations may be considered, please see attached:
The application may include the following:
Maximum Award: $1,500,000
Maximum Activities: 3
Public Service: Up to $500,000 – not more than three Public Services = 1 Activity Planning Grants: Up to $250,000
Housing Activities: Up to $500,000
Other grant requirements include:
• Jurisdictions can only apply if they have expended over 50% of previously received CDBG grant funds by criteria.
• Up to 3 public services are considered one activity.
• Activities should address serious health & safety needs • Activities should primarily benefit lower income households • Applicants must demonstrate capacity to complete the project within the grant term (36 months)
Planning and Technical Assistance (PTA)
• Studies and plans for economic development activities that meet CDBG national objectives and provide principal benefit to low-income persons. (Match required: $5,000) Based on review of prior priority lists and analysis of options available, we came up with the following considerations:
Planning and Technical Assistance:
• Road Project Design – areas to be determined by low- and moderate-income (LMI) • Trail Connection Study – connection to existing regional trails in the City • Workforce Housing Study
Item #10
Over The Counter (OTC) Projects: (not this cycle)
• Road Project Construction
• Trail Project Construction
• Fire Truck Replacement
Alignment with City Council Goal(s):
This Agenda Item helps support Goal #2: Expand Economic Development.
Fiscal Analysis:
The City’s grant consultant for CDBG, Adams Ashby Group, will be preparing application for the 2022 NOFA. The application cost(s) is an eligible expenditure under the City’s open contract with general administration funds. It is believed that the grant will have enough funds to cover this cost with no additional funds being needed. If awarded, CDBG funds are a 100% grant with matching fund required for Planning Technical Assistance Grants only at a $5,000 match per application.
Attachment(s):
1) Public Hearing Presentation
2) City Priority List