HomeMy WebLinkAbout22 - PH-2 - 2014-15 Community Development Block - 5/6/2014CITY COUNCIL AGENDA REPORT
MEETING DATE: May 6, 2014 ITEM NUMBER: Item Number
SUBJECT: 2014-2015 COMMUNITY DEVELOPMENT BLOCK GRANT PUBLIC SERVICE GRANT
ALLOCATIONS
DATE: April 14, 2014
FROM: DEVELOPMENT SERVICES / HOUSING AND COMMUNITY DEVELOPMENT
PRESENTATION BY: MIKE LINARES CDBG/HOME COORDINATOR
FOR FURTHER INFORMATION CONTACT: MIKE LINARES AT (714) 754-5678
RECOMMENDATION:
Approve Community Development Block Grant Public Service Grants for Fiscal Year
2014-2015.
BACKGROUND:
The City of Costa Mesa is a recipient of Community Development Block Grant (CDBG)
funds awarded by the U.S. Department of Housing and Urban Development (HUD). For
Fiscal Year 2014-2015, the City will receive $1,031,757 in CDBG funds. CDBG
regulations allow a maximum of 15 percent of the City's CDBG funds to be used for
public service; therefore, up to $154,764 in funding may be available for public services
for Fiscal Year 2014-2015.
Public service programs are eligible for CDBG funding if they primarily benefit low- and
moderate -income Costa Mesa residents. Examples of public service programs include
senior meals, youth employment counseling, and programs that assist the homeless.
HUD defines a low- and moderate -income individual as a person with an annual
household income equal to, or less than, 80 percent of the county median income.
Current maximum income eligibility by household size is as follows:
1 Person
2 Persons
3 Persons
4 Persons
$50,600
$57,800
$65,050
$72,250
5 Persons
6 Persons
7 Persons
8+ Persons
$78,050
$83,850
$89,600
$95,400
Over the course of several years, funding and rating criteria has been established by
the City Council. For example, current policies state that no more than 20 grants can be
funded during a fiscal year and the minimum grant amount is $5,000.
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In January 2014 a request for applications was sent to approximately 20 nonprofit
agencies that provide services to Costa Mesa residents. As required by the City's Policies
and Procedures, the City's Housing and Public Services Ad-hoc Committee (formerly the
Redevelopment and Residential Rehabilitation - 3R Committee) was assembled for the
purpose of reviewing grant applications. The Public Services Ad-hoc Committee (H&PS
Committee) is also charged with developing funding recommendations for the City
Council's consideration.
In response to the request for applications, the City received 11 applications requesting
$179,000 in CDBG grant funds; however, on March 10, 2014, staff received an email
from the Costa Mesa Senior Corporation withdrawing their request for $15,000. On
March 12, 2014, the H&PS Committee interviewed nine of the remaining ten applicants
- the Boys and Girls Club failed to show up for the scheduled interview. Utilizing the
application rating criteria that was approved by the City Council in 2008, the H&PS
Committee developed a slate of preliminary funding recommendations for FY 2014-
2015 CDBG public service grants.
At the time the H&PS Committee interviewed grant applicants, HUD had not notified the
City of its 2014-2015 CDBG grant allocation. Staff was estimating a 10 percent
reduction in funding; therefore, $142,500 in CDBG funding was available for the H&PS
Committee to allocate. The H&PS Committee recommended funding the top eight rated
applicants the full amount requested for a total of $139,000. The Committee further
recommended that remaining funds ($3,500) be left uncommitted so the City Council
could allocate these funds at their discretion. Finally, the Committee recommended that
should the City's final grant allow for additional funding for public services, those funds
should also be left to be allocated at the Council's discretion.
On March 18, 2014, the City was notified by HUD as to the amount of its 2014-2015
CDBG grant, which was slightly higher than had been anticipated. Based on the actual
grant, a total of $154,764 (or $15,764 more than recommended by the H&PS
Committee) is available for public service grants. On March 27, HCD was notified by
the CEO's staff that this unallocated amount ($15,764) should be allocated for the
Costa Mesa Senior Center Social Services Program; an application that had been
recommended for zero funding by the H&PS Committee because the applicant had
withdrawn the application. The H&PS Committee's recommendations have been
incorporated into the CEO recommendation. The recommendations of the H&PS
Committee and the CEO are provided as Attachment 1. A summary of applications is
provided as Attachment 2. Additionally, a three-year funding history of CDBG public
service grants is provided as Attachment 3.
ANALYSIS:
HUD program regulations allow the City to allocate a maximum of 15 percent of its
annual CDBG allocation for public service grants. In order to allocate these limited
resources in an efficient and effective manner, the City Council has adopted funding
guidelines. Based on these funding guidelines, the H&PS Committee has prepared
funding recommendations for Fiscal Year 2014-2015. The CEO has slightly modified
the H&PS Committee's recommendation. Attachment 1 provides a comparison of
these two recommendations. The CEO is recommending funding for nine grants
totaling $154,764 — 100 percent of available public service grant funds.
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ALTERNATIVES CONSIDERED:
Two alternatives are presented for City Council consideration with respect to funding
recommendations:
1. The City Council could revise the recommended funding allocations and reallocate
funds as it desires for public services.
2. The City Council could choose to not fund public service grants and use CDBG funds
for other eligible activities; however, this action is inconsistent with the community
needs and strategies identified in the City's 2010-2014 Consolidated Plan.
FISCAL REVIEW:
A total of $154,764 in federal grant funds will be allocated for public service grant funds
consequently there is no fiscal impact to the City's general fund.
LEGAL REVIEW:
There is no legal impact connected with this action.
CONCLUSION:
It is recommended that the City Council adopt the 2014-2015 CDBG Public Service
grants allocations as recommended by the CEO.
MIKE LINARES
CDBG/HOME Coordinator
STEPHEN DUNIVENT
GARY ARMSTRONG
Economic and Development Services
Director/Deputy CEO
TOM DUARTE
Interim Director of Finance City Attorney
ATTACHMENTS: 1 2014-2015 CDBG Public Service Grant
Recommendations
2 Summary of 2014-2015 CDBG Public Service Grant
Applications
3 Three-year CDBG Public Service Grants Funding History
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