CC 2019-03-12_09a Final CDBG and JGCSGP for Year 2019_PP PresentationConsideration of Community Development Block Grant (CDBG) Projects and Jim Guthrie Community Service Grant Program Allocations for Year 2019
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Last November, Council gave preliminary approval of the proposed Community Development Block Grant allocations for 2019. Tonight, your Council is considering final allocations for both
CDBG and Jim Guthrie Community Service Grant Program funds for 2019
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Background
CDBG is a federal program that distributes funds to participating cities and counties.
Allocation of CDBG funds can be made for a variety of projects as long as one of the following National Objectives are met:
Benefit low- and moderate-income persons;
Aid in the prevention or elimination of slums or blight; or
Address urgent community development needs that pose a serious or immediate threat to public health or welfare.
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As a brief overview, CDBG is a federal program that provides local governments with financial resources to address a wide range of community development needs, such as affordable housing,
public services, public facilities, and economic development. Eligible activities must meet one of three national objectives, which include:
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2019 Grant
The County has estimated that $79,560 in CDBG funds will be available to the City in the Fall of 2019
Funds are divided into 6 categories: public services, public facilities, economic development, area benefit, housing rehabilitation, and administration.
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The City receives an annual formula-based allocation of CDBG funds. The formula was developed by the County utilizing federal guidelines and is based on a City’s population, number of
people below the poverty level, and the number of overcrowded houses.
Based on this formula, the County estimates that $79,560 in CDBG funds will be available to the City in the Fall of 2019. These funds can be divided into 6 categories: SEE SLIDE
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CDBG Public Services Category
Capped at 15%, or $11,934 for 2019 Program Year.
City created the Jim Guthrie Community Service Grant Program (JGCSGP) in 2014 due to cumbersome CDBG process for small non-profit agencies.
5Cities Homeless Coalition (5CHC) application - $7,500 for a program that provides subsistence payments for eviction prevention and security deposits – preliminarily approved last November
Recommended to direct staff to focus future CDBG funds to ADA projects in future years
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The allocation of funds for Public Services is capped at 15%, or $11,934 for the 2019 program year. Now in previous years the request for public service funds greatly exceed what was
available given the 15% cap. However, due to stricter CDBG regulations and additional funding opportunities through the City’s Grant Program, we have not received many applications
under this category in the last few years.
This year, the City received a single application form the 5Cities Homeless Coalition in the amount of $7,500 for a program that provides subsistence payments for eviction prevention
and security deposits to help prevent homelessness. The Coalition has been running this type of program the last couple years and believe it was successful.
Last November, Council gave preliminary approval of the $7,500 request. Although the City would be allocating less than the $8,000 required in the City’s Cooperation Agreement with the
County, the cumulative amount of CDBG funding from other jurisdictions to the Coalition would exceed $8,000.
As noted in the staff reports from November and this evening, if the Council thinks it appropriate, it is recommended that direction be given to staff to focus future CDBG funds to ADA
projects and encourage the Coalition to apply for funding through the Jim Guthrie Community Service Grant Program in the future. This would not preclude the Council from taking alternate
action based on future applications, but it will aid staff in developing funding recommendations in the future.
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CDBG Public Facilities Category
No funding cap for this category.
City priority has been to use CDBG funds to address Americans with Disabilities Act (ADA) accessibility deficiencies.
Original recommendation – Castillo del Mar
Current recommendation – Valley Road/Tiger Tail Dr.
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In 2014, when the City created what is now known as Community Service Grant Program, it was determined that CDBG funds would be allocated specifically to City projects that remove architectural
barriers to improve disabled accessibility.
In November, the recommendation was to utilized the 2019 program funds for curb ramp installation in conjunction with the Castillo Del Mar extension project. Council had some hesitancy
on that project and requested more of a menu of ramps to select from. A list of the highest ranked ramps, as developed by the previous Public Works Director, was included with the staff
report and it is currently recommended that the 2019 CDBG funds be utilized for ramps at Valley Road/Tiger Tail Drive.
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Administration
Capped at 20%, or $15,912 for the 2019 Program Year.
County Administrative costs = $10,343 (per City/County Cooperation Agreement)
City Administrative costs = $5,569
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The allocation of funds for Administration is capped at 20%, or $15,912 for the 2019 program year. In accordance with the Cooperation Agreement, the County will receive $10,343 of that
for their administration of the CDBG program on the City’s behalf. The remaining $5,569 dollars is recommended to be allocated to cover the City’s administrative costs, which includes
preparing staff reports and presentations, such as this evening, administration of the CDBG projects, reporting to the County, and so forth.
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Jim Guthrie Community Service Grant
$20,000 available to eligible non-profit organizations that provide social service, educational, cultural, beautification and recreational programs and projects.
Last year, the City received 16 applications totaling $56,850.
This year, the City received 10 applications totaling $28,410.
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The City’s Jim Guthrie Community Service Grant Program was initiated in 2014 with an annual budget of $20,000. Last year, the City received 16 applications totaling $56,850. This year
the City received 10 applications totaling over $28,000
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Jim Guthrie Community Service Grant Program
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A Review Panel formed from each of the City’s Commissions, Committees and Boards, including members those recently disbanded, met last month to review the proposals and make funding
recommendations to Council. These recommendations are shown on this screen, and were primarily based on funding projects to assist people with the most critical need, specifically
the need for food, shelter and clothing. Other screening criteria included: whether direct support is given to the clients; how many local Arroyo Grande residents are served; perceived
sustainability of the project or program; existing funding base; and whether volunteers or fundraising efforts could accomplish the project or program in-lieu of the grant funds. These
recommendations were not easy to make, since all of the proposed projects are worthy of funding. But again, only $20,000 is available and over $56,000 was requested
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Environmental Review and Public Notice
Allocation of funds not considered a project under CEQA and NEPA, review completed before project implementation
Public hearing notice published on March 1, 2019
Agenda posted in accordance with Government Code Section 54954.2.
No comments received
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Recommendation
It is recommended the City Council:
Adopt a Resolution approving projects proposed to be funded with the City’s allocation of CDBG funds for the Year 2019; and
Adopt a Resolution approving projects to be funded with the City's Jim Guthrie Community Service Grant Program funds.
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