CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 9 Section Name: {{section.name}} File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: May 6, 2024
SUBJECT:
Community Development Block Grant 2024-25 Annual Action Plan – Adoption RECOMMENDATION:
Adopt the 2024-25 Annual Action Plan for the Community Development Block Grant program.
BACKGROUND:
The Community Development Block Grant (CDBG) Program provides flexible funding for community development projects and programs to assist individuals and families from extremely low- to moderate-income households as defined by the Department of Housing and Urban Development (HUD). The City receives an entitlement grant based on a national formula and has participated in this program since 1977.
The City also received an entitlement amount of HOME Investment Partnerships Program (HOME) funds from 1994 to 2015 that was used to assist housing programs and projects for very low-income households. In 2016, the City joined a consortium with the County of San Mateo and the City of South San Francisco to pool HOME funds to provide more efficiency and timeliness in expending those funds. The City continues to collect loan payments from loans made prior to 2015 and must re- program those funds into HOME-eligible projects. 2024-25 Annual Action Plan
The Annual Action Plan, which is included as Attachment 1, outlines the City’s budget for the coming program year with details of the programs and projects that will be undertaken to address the needs identified in the Consolidated Plan. The Consolidated Plan is the Five-Year Plan which outline’s The City’s long-term needs low-income households face and the goals which they aim to address with HUD funding. The City has not yet received an award letter from HUD detailing the exact amount of funding it will receive for the coming year. However, the CDBG grant is estimated to be $740,000 for the 2024-25 program year using past year averages. The following budget was drawn based upon this estimate and will be adjusted slightly. The remaining funds for the budget will come from program income ($8,000) and unspent funds that have carried over from the prior year ($142,000). The program income is generated by repayment on housing rehabilitation loans and there was a significant carryover from the prior year because of funds which have remain unspent in various contracts over the years which will now be repurposed into a street lighting project. The annual plan also includes programs to address affordable housing and other community needs. The major CDBG activities for the upcoming year are:
• Administration – A maximum of 20% of the CDBG grant is eligible for administrative costs ($105,000). Funds will mainly be used to cover City staff salaries who administer the grant, plus material and service costs. Also included in this category is one grant to Project Sentinel for the provision of fair housing services in the amount of $25,000. • Community Funding – The cap for public services is 15% of the grant and prior year program income ($111,000). At
CITY OF SAN MATEO
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the February 21, 2024 meeting, the Community Relations Commission (CRC) identified eight non-profit agencies to receive public services funding to meet priority needs. Each non-profit agency will be granted $13,800 annually over a two-year period. Additional information about the eight non-profit agencies and their public service program(s) is included on pages 47 - 48 of the Annual Action Plan.
• Economic Development – The City will fund two grants for microenterprises assistance ($80,000). The two subrecipients, Renaissance and Upwards will each receive a grant for $40,000 for general microbusiness assistance and childcare microbusiness assistance respectively.
• Minor Home Repair – The City will fund two providers for home repair, energy upgrades, and accessibility modifications to eligible households ($127,000). Rebuilding Together Peninsula and Center for Independence for Individuals with Disabilities will each receive grants to perform general home rehabilitation and accessibility rehabilitation respectively.
• Street Improvement Project – The Department of Public Works will manage this project, prioritizing sidewalk repair and pedestrian improvements located in the CDBG Priority Target Area, consisting of the North Shoreview and North Central neighborhoods ($467,000).
While the City does not directly manage HOME funds, for the purposes of the Annual Action Plan, the City tracks progress towards meeting its housing and Affirmatively Furthering Fair Housing (AFFH) goals through annual HOME activities undertaken by the County of San Mateo. HOME funds have been primarily used for the predevelopment and development of new construction of affordable housing. Progress will be reported on annually through the Consolidated Annual Performance Evaluation Report (CAPER) which is submitted to HUD each September.
BUDGET IMPACT:
The following CDBG budget is in the 2024-25 Annual Action Plan, as well as incorporated into the City’s annual budget.
CDBG Revenues CDBG Expenditures
Administration
$105,000 Entitlement $740,000
(estimate)
Community Funding
$111,000
Program Income
$8,000 Economic Development $80,000
Minor Home Repair
$127,000 Prior Year Carryover $142,000
Street Improvement
$467,000
TOTAL Revenues ~$890,000 TOTAL Expenditures
$890,000
Final expenditures will be updated into the final draft of the Annual Action Plan when HUD releases the exact CDBG allocation.
ENVIRONMENTAL DETERMINATION:
Adoption of this plan is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met. In addition, per the Community Participation Plan, a public hearing and comment periods are required. Public notice of the draft Annual Plan was published in the San Mateo Daily Journal on March 21, 2024, starting the 30-day public comment period through April 25, 2024.
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ATTACHMENTS
Att 1 - 2024-2025 Annual Action Plan
STAFF CONTACT
Nicky Vu, Housing Specialist II
[email protected]
(650) 522-7229