HomeMy WebLinkAbout01. 2011-12 CDBG HOME
AGENDA MEMO
DATE:
February 22,2011
TO:
Mayor and Members of the City Council
FROM:
Office of the City Manager
By: Brian Saeki, Director of Community Development
SUBJECT:2011-2012 FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT AND
HOME INVESTMENT PARTNERSHIP PROGRAM
RECOMMENDATION
That the City Council receive public comment on the Community Development Block Grant
and HOME Investment Partnership Programs for fiscal year 2011-2012.
No action other than to receive public comment is requested at this time.
BACKGROUND/DISCUSSION
The City of Downey is an entitlement grantee of federal grants under the Community
Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME).
These grants are allocated to the City annually by the U.S. Department of Housing and
Urban Development (HUD). In order to receive these Grants, HUD requires that the City
have an approved 5-Year Consolidated Plan and annually prepare a new Action Plan.
On May 15, 2010, the City Council approved the current 5 Year Consolidated Plan,
which covers the period through June of 2015.
The Housing Division has begun the process of developing the required Action Plan for
the period of July 1, 2011 through June 30, 2012. The Action Plan will serve as the grant
application for both grants and is submitted to HUD for compliance approval. As part of
this process, the City is required to hold a minimum of two public hearings before
submitting the Action Plan to HUD. The first hearing is required during the initial phase
of the development process, and a second hearing is required at the end of the process
before the Action Plan is approved by the City.
Both the CDBG and HOME grants can be used by the City on a wide range of activities,
but must principally benefit the City’s low and moderate-income residents. Each Grant
has its defined restrictions and conditions, but generally, the City can spend its CDBG
allocation on both housing and non-housing activities. However, under the HOME
program, funds can only be used for affordable housing activities. At least 70% of the
CDBG funds and 100% of the HOME funds must be spent on activities which principally
benefit low and moderate-income persons.
Historically, the City has allocated a larger share of these funds for housing
rehabilitation, code enforcement and public service activities. Both grants provide
allowances to cover the City’s administrative overhead and expenses.
CITY OF DOWNEY, CALIFORNIA
2011-2012 Federal Community Development Block Grant
February 22, 2011
Page 2
These federal resources can be used in a variety of ways to address specific needs of
the City. The objective of this first public hearing is to provide an opportunity for the
community to contribute suggestions and comments on the perceived or actual needs of
the City and the utilization of these federal grants.
Staff is seeking comment relevant to the following areas which will facilitate the
preparation of the Action Plan for 2011-2012.
The degree of need for affordable housing in the City, particularly for low and
moderate-income households, elderly households, the homeless, and those
households with special needs.
The need for community improvements such as public infrastructure
improvements, community facilities and community services which would directly
benefit CDBG eligible households.
Policies and priorities for the distribution of the federal grants.
Suggestions for projects, programs, and funding amounts of activities that would
address the needs of those eligible under the CDBG and HOME programs.
Comment on the effectiveness of previous or currently-funded CDBG and HOME
programs or projects.
FISCAL IMPACT
There is no impact to the General Fund. The completion of the required application
process is a requirement for the City to receive its CDBG and HOME entitlement grants
for 2011-2012.