CITIZEN PARTICIPATION ADVISORY BOARD
REQUEST FOR ACTION
MEETING DATE: January 30, 2025
SUBMITTED TO: MEMBERS OF CITIZEN PARTICIPATION ADVISORY BOARD
SUBMITTED BY: Charles Kovac, Housing Manager
PREPARED BY: Charles Kovac, Housing Manager
Subject:
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Review of Annual Community Development Block Grant Public Services Program Applications for the 2025-26 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 the next meeting scheduled for February 20, 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 May 6, 2025 in the form of the 2025-2029 Consolidated Plan, which includes the 2025-26 Annual Action Plan that serves as the City's CDBG program budget for the United States Department of Housing and Urban Development (HUD). The 2025-2029 Consolidated Plan is due to HUD by May 15, 2025.
Although the City has not been notified of its 2025-26 CDBG entitlement allocation, City staff anticipates that $165,000 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 seven public services applications that are cumulatively requesting $389,478. A summary of these applications is provided as Attachment 1.
Financial Impact:
The City anticipates approximately $165,000 in CDBG Public Services funding for the upcoming program year.
Recommended Action:
recommendation
A) Applicant presentations to the Board
B) Receive and file report.
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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 related to federal funding activities as identified in the City’s 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.
The CDBG public services NOFA for the 2025-26 Program Year was published in The Wave on October 3, 2024 and applications were due on December 12, 2024.
Anticipated CDBG Funds
HUD has not yet announced funding levels for the CDBG program for the 2025-26 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 2024-25 Program Year. Staff will identify alternatives the Board may consider at its February 20 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 $165,000, for public services programs. Eligible public services programs must be directed toward achieving the City’s goals as outlined in the Five-Year Consolidated Plan.
The City received seven (7) applications totaling $389,478 for CDBG public services program funds. All seven applications were reviewed by staff and deemed eligible for funding per HUD criteria and the City's Consolidated Plan. In addition to the Consolidated Plan goals and 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 $126,250 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 $78,900 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.
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:
January 30, 2025: Board hears oral presentations from applicants
February 20, 2025: Board finalizes funding recommendations for the City Council’s consideration
March 18, 2025: City Council and CPAB Joint Study Session meeting
May 6, 2025: City Council considers CDBG public services funding
Recommendations to be incorporated in the 2025-2029 Consolidated Plan and the 2025-2026 Annual Action PIan that serves as the application to HUD for grant funding.
Mav 15, 2025: 2025-2029 Consolidated Plan and 2025-26 Annual Action Plan due to HUD
July 1, 2025: 2025 Program Year begins
Attachment(s):
1. Summary of CDBG Public Services Applications