Agenda Item
City Council
Item #: 3.4. 4/12/2022 File #: 22-0182
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Susan Galvan, Interim Community Development Director
1. SUBJECT
Receive and file Fiscal Year 2022-2023 Community Department Block Grant funding recommendations.
2. SUMMARY
Receive and file the Fiscal Year 2022-2023 funding recommendations for the estimated Community Development Block Grant and HOME Investment Partnerships entitlement funds that will be incorporated in the 2022-2023 Action Plan and be used to implement the City’s 2020-2024 Consolidated Plan.
3. RECOMMENDED ACTION
Receive and file Fiscal Year 2022-2023 Community Development Block Grant funding recommendations.
4. FISCAL IMPACT
The total funding is $1,163,162 for the Community Development Block Grant Fund (310) and $457,125 for HOME (317).
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. DISCUSSION AND BACKGROUND
The City receives annual federal funds from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) and the HOME Investment Partnerships (HOME) programs. The estimated Fiscal Year 2022-2023 (FY2022-2023) entitlement is $1,163,162 for CDBG and $457,125 for HOME.
CDBG
The $1,163,162 CDBG estimated entitlement is broken down for each of the following activities:
· 20% or $232,632 for administration
· 15% or $174,474 for public service activities
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Item #: 3.4. 4/12/2022 File #: 22-0182
· 65% or $756,056 is for public facilities projects
The funding amounts for administration and public service activities are determined based on caps established by HUD and cannot be exceeded. Administration funds off-set the cost of staff time used in the management of the CDBG and HOME programs and result in a savings to the General Fund.
On November 18, 2021, the City announced it was soliciting applications for public service and public facilities projects through a competitive application process. The City closed the solicitation on January 13, 2022 and received a total of eight applications; five in the public services category and three in the public facilities category. All applicants are current and past funding subrecipients in good standing.
On February 17, 2022, the CDBG Committee held a public hearing to hear presentations from each of the applicants for their proposed projects and were provided with staff recommendations for funding. On March 17, 2022, the CDBG Committee held a public meeting to deliberate on the funding recommendations. The Committee moved to recommend the funding as follows:
Applicant 2021-2022
Funding
2022-2023
Requested
2022-2023
Recommended
Category
Assistance League
Operation School Bell
$13,770 $15,000 $15,000 Service
Friendly Center Community
Food Orange
15,000 20,000 16,304 Service
Community Services After
School Community Program
43,170 43,170 43,170 Service
Orange Police Department
Bike Team
100,000 100,000 100,000 Service
Fair Housing Foundation
Fair Housing Services
24,522 24,522 24,522 Service
Public Works ADA
Wheelchair Access Ramps
68,430 68,430 68,430 Facilities
Public Works Street
Rehabilitation
611,830 877,350 657,626 Facilities
Orange Library Taft Library
Restroom ADA
65,000 30,000 30,000 Facilities
Total $941,722 $1,178,472 $955,052
Funding recommendations took into consideration past year funding and performance by the subrecipient. To remain consistent with past practice, staff recommends funding the Fair Housing Foundation using administration funds. The Fair Housing Foundation provides a service to the City and is a qualifying administrative expense.
Activities in the public facilities category do not have a cap in funding and can use prior year unused funds to fund the balance of the project. Increases to funding amounts using past year unused funds can be requested throughout the program year for public facilities projects, subject to approval by Council. Reflected funding recommendations are based on the estimated known available funding for City of Orange Printed on 4/7/2022Page 2 of 3
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Item #: 3.4. 4/12/2022 File #: 22-0182
FY2022-2023.
HOME
The HOME entitlement of $457,125 is broken down by a formula calculation set by HUD for each of the following activities:
Activity HUD Formula FY2022-2023 Amount
Administration 10% $45,712
Community Housing
Development Organization
(CHDO)
15% 68,568
Developer Projects None 342,845
Total $457,125
The use of HOME funds for qualifying projects must meet specific requirements set by HUD. Staff is in the process of working with a prospective applicant to utilize available HOME funds. Staff anticipates returning to City Council in the coming months with the proposal.
The receipt and filing of this report meets the requirement of the Citizen Participation Plan for a second public meeting in the development of the Action Plan. Staff will return to Council for a Public Hearing on May 10, 2022 with the funding recommendations incorporated into the FY2022-2023 Action Plan for approval and adoption.
7. ATTACHMENTS
· 2022-2023 CDBG and HOME Funding Recommendations
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