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Staff analysis of the City’s HUD funding shows that there is $364,991 unused prior year CDBG funds that will be carried forward with recommended allocations in FY 2019-2020. These prior year funds consist mainly of unused general program administration and public services funding from FY 2014-2015 and prior years, FY 2015-2016, and FY 2017-2018. There was an unexpected repayment of $300,000 from a 2009 capital improvement loan received by the City in January 2018. Staff consulted with HUD and received a HUD determination that these funds are not program income but rather a reimbursement based on a defaulted loan agreement. Additionally, In FY 2018-2019 the City received $35,424 in program income derived from the repayment of a CDBG rehabilitation loan that was made to a low- income San Leandro homeowner in 1993. This loan was repaid upon the sale of the property by the owner’s estate. Therefore, the total available for CDBG allocation for FY 2019-2020 is $1,107,933. 2. Summarize the objectives and outcomes identified in the Plan After assessing the City's housing and community development priority needs, evaluating the Five-Year Strategic Plan objectives for FY 2015-2019, and analyzing CDBG eligibility criteria, the City proposes to allocate its available CDBG funding in the following eligible categories: Public Services, Public Facilities, Housing Activities, and General Administration. For CDBG Public Services funding there is a HUD statutory cap of 15% of the total CDBG entitlement grant plus prior year program income. In FY 2018-2019 the City received $35,424 in program income derived from the repayment of a CDBG rehabilitation loan that was made to a low-income San Leandro homeowner in 1993. This loan was repaid upon the sale of the property by the owner’s estate. Therefore, there is a total of $111,441 in funding available for Public Services grants in FY 2019-2020 ($707,517 + $35,424 x 15%). For Public Services the City proposes to fund priorities identified in it recent Human Services Gap Analysis adopted by the City Council in October: homeless services and a shelter, family support services for abused children and their families, and services for special needs population (i.e. meal delivery service for homebound seniors and meals in supportive settings for seniors). The following four agencies are thus recommended to receive CDBG FY 2019-2020 Public Services grants: CALICO (Child Abuse, Listening, Interviewing, and Coordination) program “Building Resiliency: Family Support Services for Abused Children” $22,000; Davis Street Family Resource Center “Basic Needs and Family Counseling Services” program $42,941; Service Opportunities for Seniors (SOS) “Meals on Wheels for San Leandro Seniors” $29,000; and Spectrum Community Services, Inc. “San Leandro Senior Nutrition Meals Program” $17,500. For CDBG General Administration, HUD allows entitlement cities and counties up to 20% of the total CDBG allocation. Therefore, a total of $141,503 ($707,517 x 20%) is available for the administration of CDBG funded activities including the provision of federally mandated fair housing services. Of the $141,503, staff recommends $131,503 be allocated for CDBG general administration costs. Staff also recommends $10,000 in CDBG funding to ECHO Housing to continue providing fair housing services to San Leandro residents. Annual Action Plan 3 2019 OMB Control No: 2506-0117 (exp. 06/30/2018)