TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. Subject
title
Public Hearing to consider the Fiscal Year 2024-2025 Annual Action for use of Community Development Block Grant and HOME Investment Partnerships Funding.
body
2. Summary
Request to approve the funding for proposed public projects, non-profit agency programs, and administration under the Community Development Block Grant and HOME Investment Partnerships Program.
3. Recommended Action
recommendation
1. Approve the draft Fiscal Year 2024-2025 Annual Action Plan and authorize the City Manager or his designee to execute the Fiscal Year 2024-2025 Memorandum of Understanding with City departments, subrecipient agreements with non-profit agencies, and all related U.S. Department of Housing and Urban Development documents.
2. Authorize staff to incorporate comments received at the Public Hearing or make changes if needed into the Annual Action Plan before submitting to the Department of Housing and Urban Development.
end
4. Fiscal Impact
All public projects, programs, and administration will be fully funded by the Community Development Block Grant Fund (310) and HOME Investment Partnerships Program (317).
5. Strategic Plan Goals
Goal 3: Enhance and promote quality of life in the community
e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. Discussion and Background
The City receives annual federal funds from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) and the HOME Investment Partnerships (HOME) programs for the benefit of primarily low- and moderate-income residents. The funds are allocated to projects and programs that include street improvements, handicap accessibility improvements, after-school programs, transitional housing, and supportive services.
Citizen Participation Plan Process
The City advertised the notice of CDBG funding availability on November 16, 2023 in the Orange City News. Two Public Hearings and one Public Meeting were held to solicit input from nonprofit organizations and encourage residents to participate in the Fiscal Year (FY) 2024-2025 Annual Action Plan process. The Action Plan is required annually by HUD and outlines the City’s plan for the use of funds in order to receive the funds
The first Public Hearing was held on February 15, 2024 with the CDBG Committee (Committee) to hear eligible applicant presentations. This Public Hearing is the second required Public Hearing required for City Council consideration and adoption of the funding recommendations made by the Committee. A Public Meeting was held on March 15, 2024 with the Committee to deliberate on the proposed funding recommendations presented to City Council this evening
CDBG
The FY2024-2024 allocation for CDBG will be $1,037,099. The category limits are based on not-to-exceed caps set by HUD as follows:
• 20% or $207,419.80 for administration
• 15% or $155,564.85 for public service activities
• 65% or $674,114.35 for public facilities projects
This year, the City received a total of eleven applications for a total request of:
• $240,000 for public service activities
• $772,166 for public facilities projects
Factors used to determine funding recommendations include:
• Project eligibility
• Program description
• Organizational capacity and experience
• Goals and outcomes
• Budget
• Past performance goals
• Audit review
• Funding/Local priorities
In order to increase available resources for public services, Fair Housing Foundation is recommended to be paid out of the administrative category as it is a qualifying expense.
HOME
The allocation for HOME will be $354,054. The category limits are based on caps set by HUD as follows:
• 10% or $35,405.40 for administration
• 15% or $53,108.10 for CHDO - Community Housing Development Organization nonprofit organizations that are rooted in neighborhoods and support the idea of community-led revitalization, which the HOME Program and other HUD programs promote.
• 75% or $265,540.50 for developer projects
At this time, the CDBG committee did not make recommendations for allocations to specific projects. If an application for HOME funding is received by the City, staff will return to Council for consideration at a later date.
Staff recommends the approval of the CDBG funding recommendations and authorization to include the recommendations in the FY 2024-25 Annual Action Plan.
7. ATTACHMENTS
• Fiscal Year 2024-2025 Draft Annual Action Plan
• Fiscal Year 2024-2025 CDBG Funding Recommendations Summary