CITY OF MENIFEE
SUBJECT: Community Development Block Grant for Program Year 2024/2025 Annual Action Plan
MEETING DATE: May 1, 2024
TO: Mayor and City Council
PREPARED BY: Edna Lebron, Senior Management Analyst
REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution approving the City’s Community Development Block Grant (CDBG) Program Year (PY) 2024/2025 Annual Action Plan.
DISCUSSION
The City of Menifee elected to become a CDBG entitlement jurisdiction beginning July 1, 2012.
This entitlement status enables the City to receive funds directly from the Federal Department of Housing and Urban Development (HUD) for distribution and expenditure within the City and allows the City Council to have greater control of the use of the funds and ensure greater accountability to Menifee residents. PY 2024/2025 will be the 13 th year the City of Menifee participates in the CDBG Program as an entitlement community.
As a recipient of annual CDBG grant funds, the City assists with the enhancement and support of low to moderate-income populations within the City of Menifee through the delivery of various programs and activities. Each year the City must prepare and submit to HUD an Annual Action Plan which identifies all the programs/activities to be completed in the upcoming program year, which runs from July 1st to June 30th. The Annual Action Plan is required to be formally approved by the City Council at a Public Hearing.
The Annual Action Plan will generally include the following main categories of activities/programs:
•Planning/Administration (20% Cap)
•Fair Housing Services (Mandatory for Participation)
•Public Services (15% Cap)
City of Menifee Staff Report
CDBG PY 2024/2025 Annual Action Plan
May 1, 2024
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•Housing (Senior Minor Home Rehabilitation Grant Program) •Public Facilities/Infrastructure Projects
On January 5, 2024, the City posted a Notice of Funding Availability (NOFA) and released the Public Services Application Booklet. Applications for Public Service fund requests were due on February 26, 2024. On March 28, 2024, the Menifee Citizen Advisory Committee (MCAC) reviewed the funding proposals received as a result of the NOFA and formulated their Public Services program funding recommendations for City Council consideration. The MCAC’s Public Services program recommendations are summarized below and are included within the proposed 2024/2025 Annual Action Plan. Staff concurs with the MCAC’s program funding recommendations. These recommendations are based upon available funding and careful consideration of the agency’s past performance and demonstrative ability to ensure that allocated funding will benefit low-and moderate-income residents in qualified CDBG program areas within the PY.
Organizations Requested MCAC Recommended
1. Assistance League of Temecula Valley $15,000 $14,000
2. Boys & Girls Club of Inland Valley $10,000 $10,000
3. Habitat for Humanity Inland Valley $18,750 $15,000
4. Hospice of the Valleys $10,000 $10,000
5. Menifee Mustangs Track & Field Club $10,000 0*
6. Menifee Valley Community Cupboard $20,000 $16,000
7. SAFE Family Justice Centers $10,500 $10,000 * Organization not recommended for funding in PY 2024/2025 based upon deficiencies in meeting established performance metrics in the prior year.
HUD’s Guidelines
To utilize CDBG funds for public service, the service must be either:
1) A new service; or
2) A quantifiable increase in the level of an existing service. 2024/2025 Annual Action Plan
At this time, allocations have not been announced by HUD, and the City was advised to decrease the anticipated budget for Fiscal Year (FY) 2024. Therefore, the draft allocation below shows $500,000 versus last year's allocation of $527,847. Should the actual CDBG award increase or decrease from the draft budget of $500,000, modifications would be made to the Public Service and Public Facilities/Infrastructure Projects line items. Any modifications would not require a public hearing at the City Council, instead, staff would consult with the MCAC to adjust as needed.
Staff recommends increasing the Minor Home Rehabilitation Program funding allocation by $50,000 to allow for additional residents to benefit from the Program. Labor and materials costs have increased significantly while demand for assistance through this Program has continued to grow. With other funding sources available to support the planned Sun City area street improvement projects, staff recommends decreasing in the CDBG funding allocation for Public City of Menifee Staff Report
CDBG PY 2024/2025 Annual Action Plan
May 1, 2024
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Facilities Infrastructure Projects in PY 2024/2025 to address the anticipated reduction in CDBG funding and allow for an increase in funding to support the Minor Home Rehabilitation Program.
The following summarizes the funding plan included within the proposed PY2024/2025 Annual Action Plan:
Description
Planning & Administration (20% Maximum Cap) $100,000.00 Administration 77,000.00
Fair Housing Services 23,000.00
Minor Home Rehabilitation Grant Program $170,000.00
*$20,000 for Activity Delivery Cost
Public Services (15% Maximum Cap) $ 75,000.00
Assistance League of Temecula Valley
Boys and Girls Club of Menifee Valley
Habitat for Humanity
Hospice of the Valleys
Menifee Valley Community Cupboard
SAFE Family Justice Centers
Public Facilities/Infrastructure Projects
Various Streets in Sun City $155,000.00
Grant Total $500,000.00
STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
FISCAL IMPACT
There is no fiscal impact to the General Fund from participating in the CDBG program (with the exception of staff salary augmentation). All expenditures related to CDBG adopted and approved projects/activities will come from HUD PY2024/2025 CDBG allocation to the City of Menifee.
City of Menifee Staff Report
CDBG PY 2024/2025 Annual Action Plan
May 1, 2024
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The FY 2024/2025 budget for CDBG will be presented with the City Budget and will generally be as follows based on a draft allocation of $500,000:
Account Account Number
Adopted FY
2024/2025
Budget
Adjusted FY
2024/2025
Budget
Grant Revenue 481-3845 $527,847 $500,000
Administration Various 96,667 91,060
Legal Advertising 481-2024-51400 3,000 3,000
Membership & Dues 481-2024-52200 940 940
Professional Services 481-2024-52800 2,000 2,000
Minor Home Repair* 481-2024-58014 100,000 150,000
Fair Housing Services 481-2024-58043 23,000 23,000
Public Services 481-2024-58044 79,177 75,000
Public Facilities/Infra 481-2024-58066 223,063 155,000 Total Expenditures $527,847 $500,000
*$20,000 for Activity Delivery Cost is budgeted in Administration.
The current adopted budget for the CDBG program in FY 2024/2025 is $527,847 in both grant revenue and expenditures. A change to the draft allocation of $500,000 would result in a reduction to both revenue and expenditures of $27,847.
ATTACHMENTS
1. Resolution – Annual Action Plan
2. Exhibit “A” – Draft 2024/2025 Annual Action Plan