FOR THE COUNCIL MEETING OF OCTOBER 1, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Community Development Director Dana Eady
SUBJECT: Community Development Block Grant Capital Project Proposals
Description:
The City Council will review the Capital project proposals for Fiscal Year (FY) 2025-26 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:
Staff recommend s that the City Council receive this report and direct the Fiscal Year 2025-26 Community Development Block Grant Capital project proposal to continue with the application process.
BACKGROUND:
This is the ninth consecutive year that the City Council has participated in the Capital fund allocation process by conducting a preliminary review of the proposed 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 agencies go through the extensive application process. In addition, BGAC members will use the City Council’s directives 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.
On August 20, 2024, the City Council approved to utilize FY 2025 -26 CDBG Capital funding for only City projects.
DISCUSSION:
The deadline to submit proposals for Fiscal Year 2025-26 CDBG Capital funding was Thursday, September 12, 2024. Staff received one eligible proposal. 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 the City obtains its HOME funding through the County of Santa Barbara's HOME Consortium, the City cannot 2 use that funding source to cover the administration of the grant. However, CDBG Capital funding can be used to help cover these administrative costs. The proposed project and TBRA allocation total $1,076,720. The requests are as follows:
Agency Name Proposed Project
City of Santa Maria / Rec & Parks SM Community Sports Park City of Santa Maria / Com Dev TBRA Administration
While staff has not been notified of the total amount of 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, it is estimated that $1 million will be available for Capital funding.
A summary of the proposals with staff’s notes is included in Attachment A, along with the proposal in Attachment B. Staff recommends that the City Council approve the pursuit of the Sports Complex application as well as the TBRA Administration set-aside.
Alternative(s):
The City Council could open the application process and allow outside agencies to apply for Capital funding . H owever, this would be different than the City Council’s d irection provided on August 20, 2024, to only allow City Departments to apply for Capital funding for Fiscal Year 2025-26. In addition, the Sports Complex has additional CDBG grant funding and State grant funding that both have expiration dates. Obtaining this additional funding to complete the project would further ensure that it is completed on time.
Fiscal Considerations
HUD has not released the amount of proposed Capital funding for Fiscal Year 2025-26, but staff anticipates having approximately $1 million available for Capital projects.
Impact to the Community
The proposed action will have a positive impact on the community by providing a much needed area for the community to play and participate in sports. This action will also allow the committee to make decisions on how to proceed in the CDBG application process.
ATTACHMENTS
A: Summary of Capital Project Proposals
B: FY 2025-26 Capital Project Proposals