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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2008 TITLE: REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ~-1' CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1S' Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached amendments to the 2007-2008 Community Development Block Grant agreements with Mercy House Transitional Living Centers, Inc. and Delhi Center to increase the grant amounts by $10,000 and $5,000, respectively, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The City of Santa Ana undertakes a yearly process of allocating Community Development Block Grant (CDBG) Funds, which are received from the U. S. Department of Housing and Urban Development (HUD). Part of this process involves requesting proposals for service from non-profit organizations. The City enters into agreements with these non-profits to provide public services to low-income households on behalf of the City. Occasionally, a non-profit organization decides to withdraw from the CDBG program after City Council awards a sub-grant and therefore releases any entitlement to the funds. During the 2006-2007 grant year, Orange County Rescue Mission was awarded $10,000 and Orange County Crazies was awarded $5,000 in grant funds. Both organizations have since withdrawn from the CDBG program and did not spend any of the funds granted to them. City staff recommends that $10,000 be reallocated to Mercy House Transitional Living Centers, Inc. and $5,000 to Delhi Center, thereby increasing their 2007-2008 grant award totals to $20,000 and $10,000, respectively. 25C-1