3A Public Hearing 2008 0317 - Laserfiche WebLink

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FY 2008-2009 Consolidated Action Plan 3 March 17, 2008 Attachment A summarizes the FY 2008-09 proposed activities and funding amounts. Attachment B contains the draft FY 2008-09 Consolidated Action Plan. The Action Plan includes information on funding resources for housing and community development activities, a description of activities to be undertaken during FY 2008-09, and other actions that the City will be taking to address issues such as barriers to affordable housing, anti-poverty strategies and lead-based paint hazards. For FY 2008-09, HUD is providing a CDBG entitlement grant amount of $720,922, which is a decrease of four percent (4%) from our FY 2007-08 grant. City staff project $51,774 in unallocated funds and no program income in FY 2008-09. This grant reduction translates into $23,341 less for Public Facilities and Improvements (5% decline). Funds for Public Services increases slightly to $115,901, a 2% increase from last year, due primarily to higher than projected revenue from FY 2007-08 program income. To adjust for this budget shortfall while continuing to maintain the City's commitment to CDBG-funded community services, staff recommends supplemental funding from the General Fund, as was done last year. CDBG support for the other programs would be maintained. The City will receive $303,504 in HOME funds from the Alameda County HOME Consortium plus an estimated $141,966 carried over from prior year HOME funds. In accordance with HUD regulations, the City cannot commit more than 15% of its annual CDBG allocation (plus the estimated CDBG generated program income from the current fiscal year) toward Public Services. The proposed CDBG-funded activities in the FY 2008-09 Annual Action Plan fall into the following eligible categories: Public Services, Public Facilities and General Administration. For Public Services, the City issued a Community Assistance Grant Program Request for Proposals in FY 2007-08 to award two-year grants through FY 2008-10. The Human Services Commission made final funding recommendations on February 27, 2008, approving CDBG grants for public services for two years, with the stipulation that CDBG grants are awarded annually based upon the City's CDBG entitlement grant. Faced with limited resources for FY 2008-09, staff reassessed HUD's national objectives and the City's Consolidated Plan's housing priorities for the Action Plan. It was determined that CDBG grants should be allocated to programs that more clearly help the City achieve its housing and homeless prevention priorities. Therefore,. it is expected that current and experienced CDBG subrecipients will receive funding at the same levels as FY 2007-08. Under the draft Plan, staff proposes that ECHO's fair housing services continue to receive $14,000 under the "General Administration" category in order to ease the burden on the "Public Services" funding. The ECHO landlord-tenant counseling grant will remain at $29,750. The Building Futures with Women and Children grant will be increased slightly from $28,750 to $30,000. The Davis Street Family Resource Center grant will be increased from $24,685 to $26,151; and Project Literacy's grant will remain at $30,000. The City Council will make its final recommendations for CDBG- funded public services on April 21, 2008. For Public Facilities, the City has historically utilized CDBG funds for capital improvement projects initiated by the City and local non-profit agencies. CDBG funds have been used for building and- infrastructure improvements in eligible areas, accessibility upgrades to parks, and