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Public Hearing - Fiscal Year 2019 — 2020 CDBG Program
<br />June 4, 2019
<br />Page 3
<br />At its Regular Meeting on March 27, 2019, the Community Redevelopment and Housing
<br />Commission recommended approval of the nonprofit public services for the FY 2019-20
<br />Community Development Block Grant Program to the City Council by a vote of 6:1 (Urzua,
<br />abstained).
<br />DISCUSSION
<br />The City of Santa Ana receives an annual allocation of Community Development Block Grant
<br />(CDBG) Program funds from the United States Department of Housing and Urban Development
<br />(HUD) to improve low to moderate -income neighborhoods, eliminate blight and create a more
<br />stable economic base. These funds may be used for a diverse range of programs including
<br />affordable housing, street improvements, park and public facilities improvements, economic
<br />development, code enforcement and public services. The City's CDBG allocation for Grant Year
<br />(GY) 2019, FY 2019- 20, is $5,701,154. In addition, program income in the amount of $275,039 is
<br />anticipated, and re -allocation of prior year program funds in the amount of $1,170,493
<br />The proposed FY 2019-20 CDBG Program and Funding Plan consists of the Community
<br />Redevelopment and Housing Commission's (CRHC) funding recommendations for nonprofit
<br />public service programs and staffs funding recommendations for Administration and Planning,
<br />Code Enforcement, Economic Development, City Capital Improvements, and Housing.
<br />The CDBG Program and Funding Plan can be summarized in two general categories: 1) Capital
<br />Projects/CDBG Program Funding Plan, and 2) Public Services. A summary of the process and
<br />allocation for the FY 2019-20 CDBG Program is provided below for both general categories.
<br />Capital Projects/CDBG Program Funding Plan:
<br />The FY 2019-20 CDBG Program Funding Plan includes the funding allocations for administration,
<br />fair housing, nonprofit public services, code enforcement in low- to moderate- income areas of the
<br />city to address health and safety violations, economic development to provide small business
<br />grants, residential street improvements, park improvements, multi -family rehabilitation loans,
<br />single-family rehabilitation loans, and homebuyer down payment assistance loans as described in
<br />the CDBG FY 2019-20 Program Plan (Exhibit 1). The CDBG allowable cap of 20 percent for
<br />administration and fair housing services is estimated to be $1,140,230 for FY 2019-20.
<br />Administration is necessary for staffing, compliance, reporting, fiscal management, and
<br />monitoring of the entire program. Fair housing is necessary due to CDBG requirements that the
<br />City affirmatively further fair housing. The proposed programs and projects have been determined
<br />to be of highest priority and need by the Executive Directors of the Parks, Recreation and
<br />Community Services Agency, Public Works Agency, Planning and Building Agency and
<br />Community Development Agency following the City's internal application process and the
<br />competitive public service allocation process described below.
<br />Public Services:
<br />A maximum of 15 percent of CDBG funding plus anticipated program income not to exceed 15%
<br />for FY 2019-20 ($872,543) may be used for public services. For FY 2019-20, the City is providing
<br />the entire estimated public service allocation to nonprofit organizations for programs with an
<br />emphasis on crime prevention, intervention, and/or suppression for children, youth, and families,
<br />75B-3
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