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HomeMy WebLinkAbout65B - CDBG FUNDING PROCESSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 6, 2015 TITLE: RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For _ CONTINUED TO FILE NUMBER Provide direction to staff on the following options related to an allocation process for Community Development Block Grant public service funds for Fiscal Year 2016 -2017: 1. Allocate funds to current Community Development Block Grant programs for a second year; this option is recommended by staff. 2. Conduct a new application process to be rated, ranked, and recommended for funding to the City Council by the Community Redevelopment and blousing Commission; this option utilizes the same process as the Fiscal Year 2015 -2016 funding allocation. 3. Conduct a modified process recommended by the City Council. DISCUSSION The City receives an annual allocation of Community Development Block Grant (CDBG) funds from The United States Department of Housing and Urban Development (HUD) to Improve low to moderate - income neighborhoods, eliminate blight and create a more stable economic base. These funds have been used for a diverse range of programs including housing, street improvements, parks and public facilities improvements, public services, economic development and code enforcement. The City's estimated CDBG allocation for FY 2016 -17 Is $5,298,515, a 2.5 percent reduction from the current year, A maximum amount of fifteen percent may be used for public services. This would provide approximately $794.777 for City and nonprofit administered public service programs. The following options provide methods of allocating the public service funds for FY 2016 -17. 65B -1 CDBG Funding Allocation Process for FY 2016 -17 October 6, 2015 Page 2 f.'.. � • .. - •� • � �� •:• •.Y�.. �. fe a �• • � f -.f.• Y • f • .`,f Y 'Y Y .", • i ..rY• i � � e f 1t.� d •fY• f f Yir • Y Y �• Y • Second year funding amounts will be contingent upon the City's CDBG allocation and the programs performance, Funding for each program would be reduced or Increased proportionally based on the actual CDBG allocation from HUD. In addition, any program with unresolved monitoring findings, minimal participation numbers, or an inability to expend grand funds during the grand period will not be recommended for funding for a second year. In the event that a program is not recommended for funding, staff would recommend that those funds be proportionally redistributed to all other CDBG nonprofit public service programs. If option 1 is selected, staff will provide an analysis of program performance and recommend agreements to the City Council In March of 2016. Option 2: Direct staff to conduct a new application process with the following actions: 1) release an application to nonprofits with online submission capabilities, 2) review applications for initial CDBG eligibility, 3) assign the review and rating of applications to the Community Redevelopment and Housing Commission (CRHC), and 4) bring the CRHC funding recommendations before the City Council. If option 2 is selected, staff will move forward with a new application process with the following tentative timellne: Timeframe Action NOV 2015 - DEC 2015 Application Period 6 -weeks / Online Application NOV 2015 & DEC 2015 Three Mandatory CDBG Subreci lent Training DEC 2015 Application deadline and staff review for CDBG eligibility DEC 2015 - JAN 2016 CRHC Application Review JAN 2016 Nonprofit presentations before CRHC FEB 2016 CRHC Funding Recommendations MAR 2016 Council Approval 65B -2 CDBG Funding Allocation Process for FY 2016 -17 October 6, 2015 Page 3 Option 3: Direct staff to conduct a modified process as established by the City Council. This may Include providing staff with priority needs, setting funding percentages for specific types of programs or any additional suggestions. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability). FISCAL IMPACT No fiscal impact is associated with this action. Community Development Agency KR/SV /II Exhibit; 1. Current CDBG Programs and Projected FY 2016 -17 Allocation L• - Lt m I EXHIBIT 1 Current CDBG Programs & Projected FY 2016 -17 Allocation Organization FY 2015.16 *FY 2016 -17 Program CDBG Funding Projected Allocation KidWorks CDC Cedar Evergreen Community Center— Universit y Starts Now $ 56,000 $ 54,600 America On Track Brighter Futures for Children of Prisoners $ 30,000 $ 29,250 Council On Aging Medicare Benefits Enrollment Center $ 35,250 $ 34,369 WISE Place Steps to Independence $ 30,000 $ 29,250 Human Options Community Domestic Violence Services $ 30,000 $ 29,250 The Cambodian Family Plan Ahead Youth Program $ 45,000 $ 43,875 Public Law Center Healthy & Livable Mobile Homes and Apartments $ 33,750 $ 32,906 Boys & Girls Club of Santa Ana IMPACT Model — Summer Program $ 50,000 $ 48,750 OC Children's Therapeutic Arts Center After - school Classical Music Program for Santa Ana Youth $ 30,000 $ 29,250 NONPROFIT ORGANIZATION TOTAL $ 340,000 $ 331,500 City of Santa Ana Police Department Police Athletic & Activity League (SAPAAL ) $ 202,257 $ 197,200 City of Santa Ana Parks Recreation & Community Services Agency After - School Homework Help and Tutoring Program $ 195,500 $ 190,613 City of Santa Ana Parks Recreation & Community Services Agency Senior Health and Nutrition Program $ 77,398 $ 75,463 * *CITY TOTAL $ 475,155 $ 463,276 TOTAL $ 815,155 $ 794,777 *Based on a projected 2.5% CDBG reduction. Actual allocation will vary contingent on final CDBG allocation. * *Programs in the City Total are only reflective of City programs that received a CDBG allocation in FY 2015 -16. Project Pride and HEART program were excluded due to only receiving a General Fund allocation. o