REQUEST FOR CITIZEN PARTICIPATION ADVISORY BOARD ACTION
SUBMITTED TO: Honorable Chair and Board Members
SUBMITTED BY: Charles Kovac, Housing Manager
Subject:
title
Community Development Block Grant (CDBG) Public Services: Annual Funding Review and Recommendations
body
Executive Summary:
The City of Huntington Beach receives annual federal funding through the Community Development Block Grant (CDBG) program to support programs that benefit low- and moderate-income residents. Public Services programs, a key component of CDBG funding, provide essential community services delivered by local nonprofit organizations. The Citizen Participation Advisory Board (CPAB) plays a vital role in reviewing applications and making funding recommendations to the City Council.
Financial Impact:
The City anticipates approximately $165,000 in CDBG Public Services funding for the upcoming program year.
Recommended Action:
recommendation
1. Conduct a public hearing to:
o Review the staff report.
o Receive public comments on community development needs.
2. Receive and file this report.
end
Analysis:
Overview of the Community Development Block Grant Program:
The CDBG program, funded by the U.S. Department of Housing and Urban Development (HUD), provides annual allocations to cities to support programs and projects that benefit low- and moderate-income residents. Since 1986, Huntington Beach has received over $53 million in CDBG funds. These funds have supported critical needs such as social services, infrastructure improvements, and public facilities.
For the 2025-2026 program year, the City expects to receive approximately $1.1 million in CDBG funds. Of this, $165,000 will be available for Public Services programs. Federal regulations cap funding for Public Services at 15 percent of the total grant allocation to ensure funds are distributed efficiently and targeted to areas of greatest need.
Role of the Citizen Participation Advisory Board (CPAB):
The CPAB plays a critical role in the CDBG funding process by:
• Reviewing applications from nonprofit organizations for Public Services funding.
• Conducting public hearings to gather input on community needs and funding priorities.
• Evaluating applications based on federal guidelines, community impact, and alignment with strategic goals.
• Making funding recommendations to the City Council for inclusion in the Annual Action Plan, which is submitted to HUD for final approval.
The CPAB ensures that funding decisions are transparent and reflect the needs of the community.
Public Services Programs:
Public Services programs funded by CDBG address a wide range of critical needs for low- and moderate-income residents. Eligible programs include:
• Homelessness prevention services, such as case management and emergency assistance.
• Childcare and youth development initiatives.
• Senior services, including senior center case management services and transportation assistance.
The Notice of Funding Availability for CDBG Public Services program was issued on October 3, 2024 (CPAB Attachment 1), and applications were due on Thursday, December 12, 2024. For the 2025-2026 program year, seven applications totaling $389,478 were submitted for Public Services funding. Housing Division staff reviewed these applications to ensure compliance with HUD regulations and eligibility requirements.
Evaluation Criteria:
Applications for public service funding are evaluated using the following criteria:
1. Alignment with the City’s Strategic Plan goals and priorities.
2. Organizational capacity to deliver the proposed program effectively.
3. Demonstrated community impact and ability to address identified needs.
4. Past performance and compliance with program requirements.
The applications will be evaluated using the "majority rules" method. Under this process, each Board Member may make a recommendation to fund an application for a certain dollar amount. lf the majority of the CPAB votes to fund an application, that application will be eligible. For applications receiving a majority recommendation to fund, the total CDBG dollar amount may not exceed the total of $165,000 (or a dollar amount based upon the HUD final CDBG funding distribution). The Board must agree on all adjustments by a majority.
Administration of CDBG grants involves compliance with extensive federal recordkeeping and monitoring requirements by both the City and the organizations funded by the City. To most effectively use funds, staff recommends a minimum funding level of $10,000 for each Public Services program.
Annual Action Plan and HUD Approval:
The CPAB’s funding recommendations will be presented to the City Council for approval. These recommendations will be incorporated into the 2025-2026 Annual Action Plan, which outlines the City’s planned use of CDBG funds for the upcoming program year. The Annual Action Plan serves as the City’s application to HUD for grant funding and must be submitted by May 15, 2025.
2025-2029 Consolidated Plan:
The 2025-2029 Consolidated Plan provides a strategic framework for addressing the City’s long-term community development and housing needs. It is informed by community surveys, socio-economic data, and consultations with local service providers. The updated goals include:
• Supporting services for homelessness prevention and special needs populations.
• Addressing the needs of low- and moderate-income residents.
• Preserving and enhancing public spaces and infrastructure.
• Preserving and enhancing housing options to support community stability.
The Consolidated Plan ensures that annual funding decisions align with broader community priorities and HUD objectives.
Public Hearing:
The Public Hearing provides an opportunity to review the CDBG funding process, gather input from residents, and ensure transparency in decision-making. Public participation is a cornerstone of the CDBG program and helps shape funding priorities.
Timeline:
The following key dates outline the CDBG funding process:
• January 30, 2025: Oral presentations by applicants.
• February 20, 2025: CPAB deliberates and finalizes recommendations.
• March 18, 2025: CPAB Joint study session with the City Council.
• May 6, 2025: City Council considers recommendations.
• May 15, 2025: Annual Action Plan submitted to HUD.
• July 1, 2025: New program year begins.
Attachment(s):
1. 2025-2026 CDBG Public Services Notice of Funding Availability