SR - AGR-3218.R - 2017-18 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING APPROVAL AGREEMENT1. SUBJECT
FY 2017 -18 Community Development Block Grant (CDBG) Program
2. SUMMARY
The U.S. Department of Housing and Urban Development (HUD) has not yet notified the City of
its FY 2017 -18 CDBG allocation. The City's proposed CDBG Program budget is $1,322,853.
This total includes the estimated FY 2017 -18 grant amount of $1,181,714 and unexpended prior
year CDBG funds in the amount of $141,139 that would be rebudgeted for FY 2017 -18. Staff has
conducted the FY 2017 -18 the CDBG funding process in conjunction with the CDBG Program
Committee. The Committee's funding recommendations are provided on Attachment 1.
3. RECOMMENDATION
1. Approve the funding recommendations of the CDBG Program Committee for the City's FY
2017 -18 CDBG Program.
2. Authorize staff to adjust the funding allocations if necessary after HUD notifies the City of
its actual entitlement amount.
3. Authorize staff to request and receive its FY 2017 -18 CDBG entitlement from HUD and
rebudget unexpended prior year CDBG funds for a total CDBG budget of $1,322,853.
4. Authorize the City Manager or his designee to execute FY 2017 -18 CDBG Program
Memoranda of Understanding with City Departments, Subrecipient Agreements with
nonprofit agencies, and all related CDBG Program documents.
4. FISCAL IMPACT
Funds for this purpose will be appropriated to Fund 310 (CDBG Program) during the budget
process.
FY 2017 -18
CDBG Program
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5. STRATEGIC PLAN GOAL(S)
Goal 3: Enhance and promote the quality of life in the community.
Strategy e.: Develop and strengthen collaborative partnerships to enhance quality of life
programs, projects, and services.
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Goal 3.0: Ensure adequate maintenance of public rights -of -way to enhance public
safety and improve circulation.
Policy 3.1: Continue to maintain and repair sidewalks and pavement surfaces on public rights -
of -way.
7. DISCUSSION and BACKGROUND
The City has received CDBG allocations from HUD for several years to fund eligible activities
that primarily benefit Low and Moderate Income residents. These funds have been allocated for
a variety of projects and programs including street, sewer, and storm drain improvements;
handicapped accessibility improvements; after - school and counseling programs; community
policing; transitional housing; and supportive services.
Staff began the FY 2017 -18 CDBG funding process in November 2016 by publicizing the
availability of funds and notifying nonprofit agencies on the interest list. Outreach efforts
included advertising in the Orange City News and placing a reader board notice on Time Warner
Cable Channel 3. Attachment 2 provides a summary of the nonprofit agency funding process.
In November and December 2016, meetings were held to provide technical guidance to interested
applicants including City Departments and nonprofit agencies. City Department requests were
reviewed to ensure that proposed projects and programs would be considered for funding on a
priority basis.
During January and February 2017, the CDBG Program Committee met to review all funding
requests, hear presentations from applicants, and discuss the objectives of the CDBG Program.
On March 8, 2017, the Committee held a public hearing to discuss proposed programs and
projects, hear public comments, and make funding recommendations.
The Committee considered requests from nonprofit agencies based upon the proposed benefit to
Low and Moderate Income Orange residents, the agencies' demonstrated experience in carrying
out the proposed activities, the financial feasibility of the proposed activities, and the amount of
funding available. In addition, the Committee considered whether proposed programs and
projects would address the priorities of the City's Five -Year Consolidated Plan. The Committee
also used the Five -Year Funding Allocation History (Attachment 3) as a guide in the decision -
making process.
FY 2017 -18
CDBG Program
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HUD has not yet notified the City of its FY 2017 -18 CDBG allocation. Therefore, the
Committee's recommendations assume a budget of $1,322,853. This total includes the estimated
FY 2017 -18 grant amount of $1,181,714 and unexpended prior year CDBG funds in the amount
of $141,139 that would be rebudgeted for FY 2017 -18.
The City's CDBG Program covers three categories: Administration including the Fair Housing
Program, Public Facilities /Improvements/Rehabilitation, and Public Services. Attachment 1 lists
the Committee's line item funding recommendations. Staff concurs with the recommendations, a
summary of which follows.
Administration
The total proposed allocation in the Administration category is $236,342, which is subject to a 20
percent budget cap. The Committee is recommending that $211,820 be allocated for CDBG
Program Administration, and $24,522 be allocated to the Fair Housing Foundation for the City's
Fair Housing Program.
Public Facilities /Improvements/Rehabilitation
The total proposed budget in this category is $909,254, which includes the estimated FY 2017 -18
CDBG allocation of $768,115 and unexpended prior year CDBG funds in the amount of
$141,139 that would be rebudgeted for FY 2017 -18. The Committee is recommending that all
requests in this category be funded in full as follows:
City Departments
Allocation
Nonprofit Agencies
Allocation
Public Works Dept.
Assistance League of Orange
Operation School Bell
$ 15,000
ADA WheelchairAccessRwp
$ 250,000
Friendly Center, Inc.
Community Food Orange
10,000
Public
Services
Public Works Dept.
100,000
Palmyra Avenue Overlay
277,222
Total
Allocation
City Department Total
Public
Public Works Dept.
$ 34,087
Helping Our Mentally Ill Experience
Facilities
Tularosa Neighborhood Street
success, Inc.
Total
Overlay
372,657
Riley House Launcky Room Remodeling
$ 9,375
Allocation
City Department Total
$ 899,879
Nonprofit Agency Total
$ 9,375
$ 909,254
Public Services
The total proposed allocation in the Public Services category is $177,257, which is subject to a 15
percent budget cap. A total of $178,170 was requested under this category: $143,170 by two City
departments and $35,000 by three nonprofit agencies. The amount requested exceeds the amount
available by $913. The Committee is recommending that the requests in this category be funded as
follows:
City Departments
Allocation
Nonprofit Agencies
Allocation
Assistance League of Orange
Operation School Bell
$ 15,000
Cm=i*SavicesDept
Af& ,Vud cans
$ 43,170
Friendly Center, Inc.
Community Food Orange
10,000
Public
Services
Police Dept.
Bike Team
100,000
Mariposa Women & Family Center
Community Counseling Program
9,087
Total
Allocation
City Department Total
$ 143,170
Nonprofit Agency Total
$ 34,087
$ 177,257
FY 2017 -18
CDBG Program
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Council authorization is requested to enable the City to administer its FY 2017 -18 CDBG
Program. This would include considering the Committee's funding recommendations, and
authorizing staff to adjust the allocations if necessary after HUD notifies the City of its actual
entitlement amount.
The CDBG Program has enabled the City to fund numerous infrastructure projects as well as a
variety City and nonprofit agency programs. While Federal funding for the Program beyond
FY 2017 -18 is currently uncertain, staff is hopeful that the CDBG Program will continue to be
funded at recent levels. Should the City's CDBG allocation be reduced in the future, the
distribution of funding would need to be reassessed. Staff will keep Council informed on the
status of the CDBG Program.
8. ATTACHMENTS
• Attachment 1 (FY 2017 -18 CDBG Program Committee Funding Recommendations)
• Attachment 2 (FY 2017 -18 CDBG Program Nonprofit Agency Funding Process)
• Attachment 3 (Five -Year CDBG Funding Allocation History)