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Annual Action Plan 2023 20 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-35 Projects - 91.420, 91.220(d) Introduction CDBG funds can be used for four (4) general types of projects: housing, capital improvement 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 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. After assessing the City's housing and community development priority needs, evaluating the Five-Year Strategic Plan objectives for FY 2020-2024, and analyzing CDBG eligibility criteria, the City is proposing to allocate its available CDBG dollars in the following eligible funding categories: Program Administration, Public Services, Public Facilities, Housing Activities, and Economic Development. # Project Name 1 CDBG Program Administration 2023 2 CDBG Public Services 2023 3 CDBG Public Facilities Funding 2023 4 CDBG Affordable Housing Preservation 2023 Table 7 – Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs In accordance with HUD regulations, the City may not commit more than 15% of its annual CDBG allocation (including program income) toward Public Services. The City issued a Community Assistance Program Grant (CAP) & CDBG Request for Funding/Grant Application in December of 2022 to award two-year grants for FY 2023-2024 and FY 2024-2025. In Jan of 2023, the City’s Human Services Commission (HSC) started reviewing the applications for both the City’s Community Assistance Program (CAP) and CDBG-funded Public Services for FY 2023-2025. At the Human Services Commission (HSC) meeting on April 4, 2023, staff recommend four agencies to receive Public Service grants (along with recommended funding amounts) to the HSC. The HSC recommended slightly different funding amounts and their recommendations will be presented to Council, along with this final document on May 1, 2023. The City's allocation to ECHO Housing to provide fair housing services is consistent with the Consolidated Plan priority and the City's commitment to affirmatively further fair housing. Staff is recommending an increase in FY 2023-2024 to ECHO Housing from $10,000 to $20,000 because of the