TO: Community Development Block Grant Program Committee
THRU: Russell Bunim, Community Development Director
FROM: Jessica Herrera, Housing Manager
1. Subject
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Amendment to the Fiscal Year 2025-2026 Annual Action Plan to increase funding by $38,970.84 to the Business Assistance Façade Program.
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2. Summary
Amendment to the Fiscal Year 2025-2026 Annual Action Plan to increase funding for the Business Assistance Program by $38,970.84 using available CDBG entitlement funds from prior years.
3. Recommended Action
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1. Approve the amendment to the Fiscal Year 2026-2027 Annual Action Plan to increase funding for the Business Assistance Façade Program by $38,970.84, consisting of $31,053.99 in available Fiscal Year 2024-2025 CDBG Entitlement funds and $7,916.85 in available Fiscal Year 2025-2026 CDBG Entitlement funds.
2. Recommend that staff prepare the amendment, incorporating any additional changes or revisions recommended by the Committee, and submit the amendment to the City Council for approval.
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4. Discussion and Background
Staff is proposing an amendment to the FY 2026-2027 Annual Action Plan to provide additional Community Development Block Grant (CDBG) funding for the Supporting Local Investment in Commercial Exteriors (SLICE) Business Assistance Façade Program. The City has approved a total of $291,716 in CDBG funds for the program, consisting of $150,000 from Fiscal Year 2025-2026 and $141,716 from Fiscal Year 2026-2027 Annual Action Plans previously approved by the City Council.
The proposed amendment would provide an additional $38,970.84 in CDBG funding for eligible SLICE projects, bringing total available program funding to $330,686.84.
SLICE Applicant Funding
The City received eight applications for the SLICE Program (Attachment 1), potentially representing 29 businesses currently operating within the City of Orange. Applications are being evaluated by an Evaluation Committee comprised of representatives from Economic Development, Building and Safety, and Planning. Businesses will be prioritized for funding based on scores assigned through the established evaluation criteria and the availability of CDBG funds.
If all eight applications are determined to be eligible and require the full amount of funding requested, the estimated need is $340,000 for direct assistance to the project and $56,576.70 for consultant support (Attachment 1). Consultant support will assist with project delivery, including required Environmental Assessments, Labor Compliance, and project monitoring, as well as related HUD/CDBG compliance requirements. Final project funding will not be determined until the evaluation, procurement, and due diligence processes are completed. If sufficient funds are not available to fully fund all eligible projects, funding will be allocated based on the established scoring and prioritization criteria. This process will allow the City to direct available resources toward eligible and viable projects while maximizing the reach and community impact of the SLICE Program.
Based on the current estimates, the $330,686.84 in total available program resources is approximately $65,889.16 less than the $396,576.70 needed to fully fund all anticipated project assistance and consultant support. Actual funding needs may be lower depending on final eligibility determinations, project costs, and procurement results. Eligible applicants not funded due to insufficient available resources would be placed on a waiting list for future consideration, subject to the availability of additional eligible CDBG funds during the program year. Additional funds may become available if other approved projects are completed below budget, require less funding than anticipated, or otherwise result in eligible CDBG resources becoming available.
HUD Timeliness
The use of currently available CDBG funds for eligible SLICE activities will allow the City to direct previously allocated resources toward qualifying projects while supporting the City's obligation to administer and carry out CDBG activities in a timely manner. HUD evaluates CDBG entitlement recipients for timely performance under 24 CFR § 570.902, including consideration of undisbursed CDBG funds relative to the current program-year entitlement.
5. ATTACHMENTS
1. Attachment 1 - List of SLICE applications received