FOR THE COUNCIL MEETING OF OCTOBER 3, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Community Development
SUBJECT: Review and Prioritize Community Development Block Grant Capital Project Proposals
Description:
The City Council will review and prioritize the Capital project proposals for Fiscal Year 2024-25 Community Development Block Grant funding and provide the Block Grants Advisory Committee and participating applicants with direction as to the projects that should be given priority for the upcoming funding cycle.
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
That the City Co uncil review and prioritize the Capital project proposals for Fiscal Year 2024-25 Community Development Block Grant funding and provides the Block Grants Advisory Committee and participating applicants with direction as to the projects that should be given priority for the upcoming funding cycle.
BACKGROUND:
This is the eighth consecutive year that the City Council has participated in the Capital fund allocation process by conducting a preliminary review of the proposed Capital projects prior to their review by the Block Grants Advisory Committee ( BGAC). This provides the City Council with the ability to prioritize these potential projects before the agencies go through the extensive application and bid process. In addition, BGAC members will use the City Council’s directives from this meeting as one of several factors to assist them in deciding the projects that will be recommended to receive Community Development Block Grant (CDBG) Capital funding in Fiscal Year 2024-25.
DISCUSSION:
The deadline to submit proposals for Fiscal Year 2024-25 CDBG Capital funding was Tuesday, September 12, 2023. Staff received eight eligible Capital p roject proposals. In addition, the City annually sets aside CDBG Capital funding to cover the administrative costs associated with managing the City’s Tenant Based Rental Assistance (TBRA) program. TBRA is funded through the HOME Investment Partnership Program, but since 2 the City obtains its HOME funding through the County of Santa Barbara's HOME Consortium, the City cannot use any of that funding to cover the administration of the grant. However, CDBG Capital funding can be used to help cover the administrative costs associated with a HOME program.
The proposed projects and TBRA allocation currently total $3,8 50,420. While staff has not been told how much funding the United States Department of Housing and Urban Development (HUD) will provide to the City for the upcoming fiscal year, the City will likely receive approximately $1.4 million based on the current year’s allocation, of that amount, approximately $1 million will be available for Capital funding. This means that not all the proposed projects will be able to receive funding, and those that are recommended for funding will more than likely not be recommended for the full asking amount.
Aside from the City of Santa Maria’s TBRA Administration allocation, the capital proposals submitted include:
Agency Name Proposed Project
Boys & Girls Clubs of the Central Coast Renovations to the SM Facility City of Santa Maria Rec & Parks SM Community Sports Park CommUnify Safe at Home/Minor Home Repair
Community Action Partnership Minor Home Repair Program Family Service Agency Security for Front Office
Fighting Back Santa Maria Valley Unhoused TAY Navigation Center Good Samaritan Shelter Homeless Day Center
People’s Self-Help Housing Heritage View I & II Acquisition A summary of the proposals with staff’s notes is included in Attachment A, along with the individual proposals which are included in Attachment B. Staff requests that the City Council prioritize the above-mentioned projects to provide the applicants and the B GAC with direction as to which projects should be funded for the upcoming fiscal year. Since there is not enough money to fund all the projects, this process is an important step in properly informing the applicants about their chances of receiving funding.
Alternative:
Rather than ranking the proposed projects, the City Council may select only a few Capital projects to proceed with the funding allocation process. However, this alternative would greatly limit the pool of qualified applicants and impact the BGAC’s ability to vet the projects and conduct a more extensive analysis of each applicant.
Fiscal Considerations:
HUD has not released the amount of proposed CDBG Capital funding for Fiscal Year 2024-25, but staff anticipates having approximately $ 1 mill ion available for Capital projects.
3 Impact to the Community:
The proposed action will have a positive impact on the community by providing interested agencies with valuable information that will allow them to make decisions on how to proceed in the City’s CDBG application process.
ROSIE ROJO
Community Programs Manager
CHUEN WU
Director of Community Development
Attachments: A: Summary of Capital Project Proposals
B: FY 2024-25 Capital Project Proposals
C: Ten-Year Breakdown of CDBG-Funded City Projects