Item #09
Date: June 20, 2023
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 2023 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 2023 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 2023 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 2023 NOFA (maximum of two activities but only one per category), but first must hold a public hearing to receive public input. The activities under the 2023 CDBG NOFA may include the following up to the maximum of $3,250,000:
• Public Service (maximum grant of $250,000), for one service. 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 for one study/plan). The product must show a connection to assisting with an eligible CDBG activity that, if implemented, meets a National Objective. Completed planning documents are submitted to the State at the time of completion. The grants may require match, in the past a $5,000 cash Item #09
match to be expended prior to expenditure of CDBG funds – the NOFA will outline this final amount. Examples include studies, analysis, data gathering, preparation of plans, and identification of action that will implement plans, NEPA and environmental plans. • Housing Programs (maximum grant of $1,500,000 – Over the Counter (OTC) Activity):
• 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 $1,500,000 for either Business Assistance or Microenterprise Assistance – OTC Activity). 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. • Public Infrastructure (maximum grant of $3,250,000 – OTC Activity). Provides funding for all construction, project implementation, design, federal compliance and overlay requirements, environmental and other soft costs related to the project. Projects may include water, sewer, storm drain, sidewalks, roadways, wells, water storage tanks and other public infrastructure systems.
• Public Facility (maximum grant of $3,250,000 – OTC Activity). Provides funding for project equipment, construction of community/senior centers, homeless facilities, park and recreation facilities, fire stations, fire equipment, health facilities, and other public facilities that meet the national objective of the program.
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: $3,250,000
Maximum Activities: 2
Public Service: Up to $250,000 – not more than 1
Planning Grants: Up to $250,000 – not more than 1
OTC Activities: Up to $3,250,000 – may apply for 2
Other grant requirements include:
• Activities should address serious health & safety needs • Activities should primarily benefit lower income households (defined as at or below 80% of the median income)
• Applicants must demonstrate capacity to complete the project within the grant term (36 months)
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• OTC projects and programs must be ready to bid or implement the program within 90 days of contract execution
• Single audit must be completed and submitted
• Housing Element must be up to date with HCD
• Sam.Gov registration must be active
Based on review of prior priority lists and analysis of options available, we came up with the following considerations:
Over The Counter (OTC) Projects:
• Road Project Construction
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 2023 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.
Attachments:
1) Public Hearing Presentation
2) City Priority List
3) Proposed Pavement Rehabilitation Project Map