CC 2017-11-28_10a PP_Preliminary CDBG Projects 2018
CONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2018
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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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CDBG Requirements:
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A requirement that no less than 70% of each year’s allotment of CDBG funds be used for projects or programs that benefit low income persons;
A provision that the City may use up to 30% of each year’s allotment of CDBG funds for projects that "eliminate blight";
Limitations on the types of projects or programs that may be undertaken with CDBG funds;
A limitation restricting the amount of CDBG funds spent on public services to no more than 15% of the City’s annual allotment;
Restrictions against using CDBG funds to pay for projects or programs that have already been initiated;
Requirements that CDBG-funded projects be completed in a timely manner;
Requirements to comply with federal environmental laws, labor laws (prevailing wages), and procurement regulations.
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2018 Grant
The County has estimated that $76,200 in CDBG funds will be available to the City in the fall of 2017 (1% increase from 2017)
The County will help the City administer the program.
Funds are divided into 6 categories: public services, public facilities, economic development, area benefit, housing rehabilitation, and administration.
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CDBG Public Services Category
Capped at 15%, or $11,430 for 2018 Program Year.
City created the Jim Guthrie Community Service Grant Program (JGCSGP) in 2014 due to cumbersome CDBG process for small social service non-profit agencies.
5Cities Homeless Coalition (5CHC) application - $9,000 for a program that provides subsistence payments for eviction prevention and security deposits.
Funding not recommended for 5CHC application.
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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.
City staff is pursuing financial assistance through the California Joint Powers Insurance Authority (JPIA) to update the City’s ADA Transitions Plan in 2018.
Funding not recommended for ADA projects until this plan is complete.
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CDBG Housing Rehabilitation Category
No funding cap for this category.
Family Care Network, Inc. application - $70,000 to perform energy upgrades to their existing facility located on South Elm Street, including an on-site solar system and high efficiency
electric heating system.
Project is consistent with the County’s Fair Housing Plan.
Project meets all of the criteria used to assist with funding recommendations.
Recommend allocating $65,294 of City CDBG funds.
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Family Care Network, Inc. (FCNI) Request
Total request is $70,000 with following breakdown:
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Administration
Capped at 20%, or $15,240 for the 2018 Program Year.
County Administrative costs = $9,906 (per City/County Cooperation Agreement)
City Administrative costs = $1,000 (City is allowed up to $5,334 for its Administrative costs; $4,334 is recommended to be allocated to FCNI)
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Recommendation
It is recommended the City Council provide preliminary approval of proposed projects to be funded with the City’s allocation of CDBG funds for Year 2018.
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