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Public Hearing - Fiscal Year 2018 — 2019 CDBG Program May 15, 2018 Page 3 COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting on March 28, 2018, the Community Redevelopment and Housing Commission recommended approval of the nonprofit public services for the Fiscal Year 2018 - 2019 Community Development Block Grant Program to the City Council by a vote of 4:0 (Cano, Santana absent). DISCUSSION The City of Santa Ana receives an annual allocation of Community Development Block Grant (CDBG) Program funds from the United States Department of Housing and Urban Development (HUD) to improve low to moderate -income neighborhoods, eliminate blight and create a more stable economic base. These funds may be used for a diverse range of programs including affordable housing, street improvements, park and public facilities improvements, economic development, code enforcement and public services. The City's CDBG allocation for Grant Year (GY) 2018, Fiscal Year (FY) 2018 - 2019, is $5,816,959. The proposed FY 2018 - 2019 CDBG Program and Funding Plan consists of the Community Redevelopment and Housing Commission's (CRHC) funding recommendations for nonprofit public service programs and staffs funding recommendations for Administration and Planning, Code Enforcement, Economic Development, City Capital Improvements, and Housing. The CDBG Program and Funding Plan can be summarized in two general categories: Capital Projects/CDBG Program Funding Plan and Public Services. A summary of the process and allocation for the FY 2018 - 2019 CDBG Program is provided below for both general categories. Capital Projects/CDBG Program Funding Plan: The FY 2018 - 2019 CDBG Program Funding Plan includes the funding allocations for administration, fair housing, nonprofit public services, code enforcement in low- to moderate - income areas of the city to address health and safety violations, economic development to provide small business grants, residential street improvements, park improvements, multi -family rehabilitation loans, single-family rehabilitation loans, and homebuyer down payment assistance loans as described in the CDBG FY 2018 — 2019 Program Summaries (Exhibit 1). The CDBG allowable cap of 20 percent for administration and fair housing services is estimated to be $1,163,391 for FY 2018 - 2019. Administration is necessary for staffing, compliance, reporting, fiscal management, and monitoring of the entire program. Fair housing is necessary due to CDBG requirements that the City affirmatively further fair housing. The programs and projects have been determined to be of highest priority and need by the Executive Directors of the Parks, Recreation and Community Services Agency, Public Works Agency, Planning and Building Agency and Community Development Agency following the City's internal application process and the competitive public service allocation process described below. Public Services: A maximum of 15 percent of CDBG funding ($872,543 for FY 2018 — 2019) may be used for public services. For FY 2018 - 2019, the City is providing the entire estimated public service allocation to nonprofit organizations for programs with an emphasis on crime prevention, 75A-3