CITIZEN PARTICIPATION ADVISORY BOARD
REQUEST FOR ACTION
SUBMITTED TO: MEMBERS OF CITIZEN PARTICIPATION ADVISORY BOARD
SUBMITTED BY: Charles Kovac, Housing Manager
PREPARED BY: Gregory Hoang, Senior Housing Analyst
Subject:
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Funding Recommendations for the Community Development Block Grant Public Services Program Applications for the 2024-25 Program Year
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Executive Summary:
Each year the Citizen Participation Advisory Board (Board) considers public services applications from local non-profit organizations and City of Huntington Beach (City) departments for funding under the Community Development Block Grant (CDBG) entitlement grant program. In accordance with the City’s Citizen Participation Plan, the Board considers, evaluates, and makes funding recommendations on all eligible applications.
During this meeting, the Board will determine final funding recommendations for the applications. The Board's funding recommendations are anticipated to be discussed at a Joint City Council/CPAB study session on March 5 and considered for approval by the City Council at a public hearing on April 16, 2024 in the form of the 2024-25 Annual Action Plan, which serves as the City's CDBG program budget for the United States Department of Housing and Urban Development (HUD). The 2024-25 Annual Action Plan is due to HUD by May 16, 2024.
Although the City has not been notified of its 2024-25 CDBG allocation, City staff anticipates that $175,750 will be available for CDBG public services programs and activities, which is 15 percent of the total CDBG funding allocation. The Board’s five public services applications are cumulatively requesting $270,337. In addition, one application from Fair Housing Foundation, falls under the administration category (20 percent of the total CDBG funding allocation), and does not impact the public services projected funding of $175,750. The 2024-25 CDBG public services application requests are summarized in Attachment 1.
Financial Impact:
The City anticipates receiving approximately $1.2 million in CDBG funds from HUD, of which, approximately $175,750 will be available to community and non-profit organizations for public services programs and activities.
Recommended Action:
recommendation
A) Recommend to the City Council 2024-25 CDBG funding allocations related to the public services applications.
B) Provide a recommendation to the City Council for adjusting program funding levels if the City’s final CDBG allocation from HUD is higher or lower than anticipated.
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Alternative Action(s):
Since the Citizen Participation Plan outlines the CDBG allocation process and states that the CPAB will make recommendations to the City Council, staff does not recommend an alternative action.
Analysis:
Background/Discussion
The Board has reviewed all funding applications for the upcoming 2024-25 CDBG public services Program Year and has heard presentations from applicants summarizing their requests. As previously mentioned, HUD has not yet announced funding levels for the CDBG program for the 2024-25 Program Year. To ensure that the City meets HUD-mandated deadlines, the Board must begin evaluating applications before this funding level is known. Because of the uncertainty regarding program funding levels and the need for the Board to move forward with the funding recommendation process, anticipated funding levels discussed in this report assume no change from the current 2023-24 Program Year. Staff will identify alternatives the Board may consider at its February 22 meeting in the event HUD announces actual funding levels that are higher or lower than presented in this report.
Federal regulations allow the City to designate up to 15 percent of its CDBG allocation, estimated to be $175,750, for public services programs. Eligible public services programs must be directed toward achieving the City’s goals as outlined in the 2020-2024 Five-Year Consolidated Plan. It should be noted that one application is for fair housing services (submitted by the Fair Housing Foundation). HUD mandates that all jurisdictions provide fair housing services that include fair housing education, monitoring claims of discrimination, and enforcing fair housing laws in the courts. The fair housing service provider will be funded through CDBG (or HOME) administration category, which does not affect the estimated public services funding of $175,750.
The City received five applications totaling $270,337 for CDBG public services program funds as shown in Attachment 1. It should be noted that initial requests totaled $320,337 but two applicants (City’s Homelessness Prevention Program and Robyne’s Nest) have recently reduced their request by $25,000 each. All five applications were reviewed by staff and deemed eligible for funding per HUD criteria and the City's Strategic Plan.
CDBG-funded activities must address the priority needs outlined in the City's Strategic Plan. These include: youth services, senior services, special needs services, homelessness assistance, street outreach, and fair housing services. When making funding recommendations, Board members are required by federal program regulations to consider the extent to which proposed programs and projects contribute to accomplishing the City's Strategic Plan goals.
In the likely event that the City is allocated more or less than the estimated CDBG funding, staff has provided the Board options to consider below:
1. If funding from HUD is higher than anticipated, how should the additional funds be allocated? The Board could recommend adjusting applications equally, proportionally, or adjusting one or more specific applications. The Board could recommend a maximum funding level as the amount requested by each applicant, thereby any excess amount would be distributed to other applicants.
2. If funding from HUD is lower than anticipated, how should the recommendations be reduced? The Board could recommend adjusting applications equally, proportionally, or adjusting one or more specific applications. The Commission could also recommend a minimum funding level of $10,000 for each application.
Schedule
The following schedule outlines the next steps to complete the annual CDBG public services funding allocation process. This schedule will allow the Board and the City Council time to review all eligible applications and carefully consider all public input during the process:
March 5, 2024: City Council and CPAB Joint Study Session meeting
April 16, 2024: City Council considers CDBG public services funding recommendations to be incorporated in the 2024-2025 Annual Action PIan that serves as the application to HUD for grant funding.
Mav 16, 2024: 2024-25 Annual Action Plan due to HUD
July 1, 2024: 2024 Program Year begins
Environmental Status:
Not Applicable
Strategic Plan Goal:
Community Engagement
Attachment(s):
1. Summary of CDBG Public Services Applications