CONTINGENCY STRATEGY TO ADDRESS
THE LATE RELEASE OF 2022-2023 CDBG ENTITLEMENT FUNDING ALLOCATIONS
The City of Santa Clarita (City) has been informed by the U.S. Department of Housing and Urban Development (HUD) that notification of the amount of the 2022-2023 Community Development Block Grant (CDBG) entitlement funding allocations will be delayed and will not be available to the City during the development of the Annual Action Plan (AAP). HUD has directed the City to develop the AAP using an entitlement amount equal to the entitlement for the 2021-2022 program year. In addition, HUD has directed the City to prepare a contingency strategy based on the information in HUD Notice CPD-22-05 (Notice) to guide the actual allocation of funds once the entitlement amounts are released.
The delay in the release of the 2022-2023 entitlement funding allocations will have no effect on the use of prior year savings or the use of CARES Act funds in the 2020-2021 Annual Action Plan. Therefore, the proposed contingency strategies below include only the 2022-2023 entitlement funding.
PROPOSED CONTINGENCY STRATEGIES
Decrease in Funding
• Fund the following programs at recommended amounts to the extent possible in the following order:
o Bridge to Home – Homeless Services Program
o Family Promise of Santa Clarita Valley – Low/Mod Income Household Support o Single Mother’s Outreach– Comprehensive Mental Health • If any Public Service funds remain, decrease funding for the remaining recommended Public Service programs at an equal percentage to stay within the Public Services cap. • Fund Senior Center – Handyworker Program at recommended amount. • Reduce funding for Administration and Fair Housing at the amount of the overall reduction to remain under the funding cap.
• Allocate $200,000 to the 2020-21 West Creek Park Project. • Allocate remaining capital funds to the Shelter Project.
Increase in Funding
• Increase funding for all Public Services at an equal percentage to the amount allowed by the Public Services cap.
• Fund Senior Center – Handyworker Program at recommended amount. • Increase the Administration allocated to the maximum allowable 20% Administrative costs cap. • Allocate any remaining additional capital funds to the Shelter Project.
The City has implemented the citizen participation process for the 2022-2023 program year as required, including a publication on April 1, 2022, of the availability of the draft AAP for 30 days beginning April 1, 2022. Any comments received will be included in the draft AAP, which is expected to come before the City Council in a Public Hearing on May 10, 2022. Also, per the HUD Notice, the AAP will not be submitted to HUD until the entitlement amounts are released, but no later than 60 days after the entitlement amounts are released.