Item 27 - Fiscal Year 2023-24 Annual Action Plan and Budgets for CDBG, HOME, and

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FY 2023-24 Annual Action Plan and Budgets for CDBG, HOME, and ESG Programs May 2, 2023 Page 3 3 4 1 1 The various projects and programs covered under the FY 2023-24 Annual Action Plan are designed to serve low-income residents. The FY 2023-24 Annual Action Plan includes the program budgets described in detail below for the CDBG, HOME, and ESG programs respectively. Community Development Block Grant Program Budget The Community Development Block Grant (CDBG) program provides funds to improve low and 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 FY 2023-24 is $4,808,057. The proposed Annual Action Plan for the CDBG Program consists of the FY allocation, program income, and prior year CDBG resources. The proposed FY 2023-24 CDBG Program Funding Plan consists of the Community Development Commission funding recommendations for nonprofit public service programs from 2022 and staff’s funding recommendations from this year for administration and planning, code enforcement, city capital improvements, and housing. The CDBG Program Funding Plan can be summarized in two general categories: 1) Capital Projects/CDBG Program Funding Plan and 2) Public Services. A summary of the process and allocation for the FY 2023-24 CDBG Program Funding Plan is provided below for both general categories. Capital Projects/CDBG Program Funding Plan The FY 2023-24 CDBG Program Funding Plan includes the funding allocations for administration and planning, code enforcement in low and moderate-income areas of the city to address health and safety violations, economic development to provide small business grants, nonprofit public services, city capital improvement projects, and single- family rehabilitation grants (Exhibit 2). The CDBG allowable cap of 20 percent (20%) for administration and fair housing services is estimated to be $961,611 for FY 2023-24. Administration is necessary for staffing, compliance, reporting, fiscal management, studies, and monitoring of the entire program. Fair housing is necessary due to CDBG requirements that the City affirmatively further fair housing. Four new city capital improvement projects (Public Facility Improvements, Streets & Parks - $1,425,237) are recommended for funding as follows: 1) $500,000 for PAAL ADA restroom construction. 2) $125,000 for cool pavement treatment of Madison and Campesino Park parking lots. 3) $300,237 for Construction of a new parking lot at the Santa Ana Main Library. 4) $500,000 for Logan/Chepa’s Park master design. The proposed programs and capital improvement projects have been determined to be