REQUEST FOR CITIZEN PARTICIPATION ADVISORY BOARD ACTION
MEETING DATE: February 1, 2024
SUBMITTED TO: Honorable Chair and Board Members
SUBMITTED BY: Charles Kovac, Housing Manager
Subject:
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Review of Annual 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 hear oral presentations from each applicant and have an opportunity to ask questions about the public services programs submitted for CDBG funding. At this February 1 meeting or the next meeting scheduled for February 22, the Board will determine final funding recommendations for the applications. The Board's funding recommendations are anticipated to be considered 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 14, 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 anticipated CDBG funding allocation. The Board will be reviewing five public services applications that are cumulatively requesting $320,337. 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. A summary of these applications is provided as 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) Applicant presentations to the Board
B) Receive and file report.
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Alternative Action(s):
As applicant presentations to the Board are part of the CDBG allocation process as outlined in the Citizen Participation Plan, staff does not recommend an alternative action.
Analysis:
Background/Discussion
Each year, the City of Huntington Beach receives entitlement grant funding from HUD through the CDBG programs. This funding must be used to benefit low- and moderate-income City residents according to the program objectives set forth in HUD regulations, as well as the community's needs identified in the City's Strategic Plan, which is part of the City’s 2020-2024 Five-Year Consolidated Plan. HUD regulations require public participation in the allocation of CDBG program funds. Therefore, each year the City issues a Notice of Funding Availability (NOFA) to invite local community organizations and City departments to apply for these funds. Applications are accepted for public services programs.
At the direction of the Board, the CDBG public services NOFA for the 2023-24 Program Year was published in The Wave on October 5, 2023 and applications were due on December 15, 2023.
Anticipated CDBG Funds
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 this February 1 meeting or 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 administration category, which does not impact the estimated public services funding of $175,750.
The City received five applications totaling $320,337 for CDBG public services program funds. All five applications were reviewed by staff and deemed eligible for funding per HUD criteria and the City's Strategic Plan. In addition to the Strategic Plan priority objectives, the Board must consider the following criteria when determining its funding recommendations in this category:
1. HUD requirement for benefit to low- and moderate-income persons. CDBG-funded programs must either:
a. Benefit lower-income persons who:
i. Earn less than 80 percent of the Orange County Median Income (currently $114,800 for a family of four), or
ii. Qualify under a limited clientele category (victims of domestic violence, elderly, disabled adults, homeless or in a geographic area where at least 51 percent of individuals are lower-income).
b. Benefit very low-income persons who earn less than 50 percent of the Orange County Median Income (currently $71,750 for a family of four).
2. Eligible use of public funds. Eligible use of funds includes labor, supplies and materials directed toward improving the community's public services. Such services include, but are not limited to, those concerned with homelessness and housing services, employment, youth and family counseling, child care, health care, drug abuse prevention, education, tenant/landlord mediation, welfare, or recreational needs.
3. Direct benefit to Huntington Beach residents. All funding must be allocated to services that directly benefit Huntington Beach residents.
Due to the extensive federal recordkeeping and monitoring required by the CDBG program, the Board may want to consider establishing a minimum funding level of $10,000 per application.
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, fair housing services, affordable rental housing development, affordable housing preservation, City public facilities improvements, and other public facilities improvements. 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.
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:
February 1, 2024: Board hears oral presentations from applicants and may determine funding recommendations.
February 22, 2024: Board finalizes funding recommendations for the City Council
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.
May 14, 2024: 2024-25 Annual Action Plan due to HUD
July 1, 2024: 2024 Program Year begins
Strategic Plan Goal:
Community Engagement
Attachment(s):
1. Summary of Applications for Program Year 2024-25