FOR THE COUNCIL MEETING OF AUGUST 20, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Community Development Director Dana Eady
SUBJECT: Adoption of a Resolution Approving Fiscal Year 2025-2026 Community Development Block Grant Funding Priorities
Description:
The City Council will conduct a public hearing to receive comments on the priorities for Fiscal Year 2025-2026 funding.
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:
Adopt a Resolution approving the Community Development Block Grant funding priorities for the 2025-2026 Fiscal Year Funding Process.
Approve the use of Fiscal Year 2025 -26 CDBG Capital funding for City -related public facility projects.
BACKGROUND:
On an annual basis, the Block Grants Advisory Committee (BGAC) reviews the priorities outlined in the City’s Five -Year Consolidated Plan and decides whether they should be modified based on community needs. The priorities are one of the tools used by the BGAC and the City Council in determining what activities and projects should receive funding to maximize the impact the City’s Community Development Block Grant (CDBG) funds will have on City residents. This is a required process under the U.S. Housing and Urban Development’s (HUD’s) adopted Citizen Participation Plan.
DISCUSSION:
As part of th e required CDBG funding process, staff conducted a Community Needs Workshop on Monday, July 22, 2024. The workshop is designed to obtain information from residents and non -profit agencies concerning the unmet needs in the community.
Participants spoke about the need for more affordable housing, rent control, additional assistance for those experiencing homelessness, childcare affordability, accessibility and training, as well as continued education and support for related t o sexual, mental, physical, and emotional abuse and/or trauma. The needs expressed are reflected in the 2 existing CDBG funding priorities; therefore, the BGAC recommends no changes be made to the current priorities.
These funding priorities are one of several tools used by the BGAC and the City Council to determine how the funding is distributed. The City also has discretion as to how the funding should be allocated based on other factors such as the immediate need of a project, the project’s timeliness , the administrative capacity of the agency applying for funding, the applicant’s capacity to financially sustain the project long after the funding is utilized, and long-term goals imposed by the City in its five-year CDBG Consolidated Plan.
The adoption of these funding priorities by the City Council will kick off the Notice of Funding Availability (NOFA) which is scheduled to be released on Thursday, August 22 , 2024. This will inform potential applicants that the application process for F iscal Year 2025-26 has begun. During this funding cycle, staff recommends that the application process only be offered to non-profits under public services. Due to pressing needs involving the City’s public facilities, staff is recommending that CDBG Capital funding be set aside for City -related projects that will benefit the entire community, primarily low to moderate income people and areas per CDBG regulations. This may include currently funded public facility projects and / or new projects that require immediate attention, as it is important that funding be expended in a timely manner . While the City has historically provided approximately half of its CDBG Capital funding to non -profits, it is at the City’s discretion to utilize the funding to meet the community’s needs as long as the projects meet HUD’s regulations.
Alternative(s)
The City Council can amend the priorities with the understanding that it differs from the BGAC’s recommendation, the City’s adopted five-year CDBG Consolidated Plan, and that the changes may not accurately reflect the overall expressed needs of the community.
Delaying the adoption of the funding priorities will also delay the CDBG funding process for FY 2025-26.
The City Council can also choose not to set aside all the CDBG Capital funding for City projects or set aside a portion solely for non-profit projects like the minor home repair program which has been supported annually by the City Council for many years. In doing so, the Capital funding for City-related projects may be impacted.
Fiscal Considerations
No fiscal impacts.
Impact to the Community
The proposed action will have a positive impact on the community by providing the BGAC and potential sub -recipients with a decisive outline of the priorities for the upcoming funding cycle.
ATTACHMENTS
Attachment A: Proposed FY 2025-26 Priorities