3D Public Hearing 2012 0416 - Laserfiche WebLink

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ACTIVITY LOCATIONS CDBG funds can be used for four (4) general types of projects: housing, capital projects, economic development, and public services. All projects must meet at least one (1) of HUD's national objectives: 1) to benefit low /moderate - income people; 2) to prevent or eliminate slums and blight; and 3) to meet an urgent community development need. Even if a project is suitable for one of the City's eligible categories, it must also pass the low- and moderate - income benefit test. A project basically meets this standard if at least 51% of the beneficiaries have low- moderate incomes (i.e., incomes at or below 80% of Area Median Income) or if the project benefits an area (e.g., census tracts, service area, neighborhood, etc.) with a majority of low- moderate income people. Funded projects are required to document the income levels of persons and households receiving these services. The City is permitted to spend up to 15% of its annual CDBG entitlement grant funds, plus previous year's program income, on public services. Some of the previous public service projects the City has funded include emergency shelter services, multi - services (through a community service center), tenant/landlord counseling, mental health services, services for domestic violence victims, and home - delivered meals for homebound seniors. Through the City's Community Assistance Grant Program (CAP), the City of San Leandro supports community -based non - profit organizations that provide public services to San Leandro residents. There historically have been two (2) sources of funds for CAP: the City's General Fund and CDBG funds. However, the City continues to have a structural deficit, and therefore, no General Funds will be used to fund the CAP program for FY 2012 -2013, and as with the past two (2) fiscal years (2010- 2012), the CAP will be funded solely with CDBG funds. The City's Request for Proposals (RFP) process for the CAP program typically occurs every two (2) years, but due to the uncertainty of the substantially reduced CDBG funds, the City did not issue an RFP for the next FY 2012 -2014 funding cycle. Instead, the current CAP /CDBG contracts for the CAP- funded agencies have been extended for one (1) year. There will be a 15.28% across - the -board reduction in the funding amount for each CAP agency as a result of the City's reduced CDBG funding. The RFP process will begin again in FY 2013 -2014 to provide more time for the City Council and Human Services Commission to re- assess public services priorities. The City's Human Services Commission (HSC) and City staff re- evaluated these CAP- funded agencies to ensure that they continue to meet the HSC and CDBG evaluation criteria used to assess their eligibility to received CDBG funds. Below is a partial list of these specific criteria ♦ Project is CDBG - eligible and meets one of the three National Objectives (stated above). ♦ Project is consistent with the community priorities and goals stated in the Consolidated Plan and /or other City planning documents and needs assessments. ♦ Prior experience and performance with CDBG - related activities and /or prior experience with other grant programs, and proven record carrying out service projects in the community. ♦ Financial capacity as indicated by audited financial statements. ♦ Adequate staffing (staff size, experience, and qualifications). Final Action Plan — FY 2012 -2013 City ofSan Leandro Page 10