Item 29 - Fiscal Year 2022-2023 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs

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FY 2022-2023 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 19, 2022 Page 3 2 5 9 1 Program Allocation CDBG $5,640,635 HOME $1,706,231 ESG $ 489,141 TOTAL $7,836,007 In addition, the City will re-program a total of $2,653,725 in prior-year CDBG program resources that includes program income in the amount of $103,041 and $2,550,684 of prior year resources. The various projects and programs covered under the FY 2022-2023 Annual Action Plan are designed to serve low-income residents. The FY 2022-2023 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 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 expected CDBG allocation for Grant Year (GY) 2022, FY 2022-2023, is $5,640,635. The proposed FY 2022-2023 CDBG Program and Funding Plan consists of the Community Development Commission funding recommendations for nonprofit public service programs and staff’s funding recommendations for administration and planning, code enforcement, City capital improvements, and housing. The CDBG Program and Funding Plan can be summarized in two general categories: 1) CDBG Program Funding Plan/Capital Projects; and 2) Public Services. A summary of the process and allocation for the FY 2022-2023 CDBG Program is provided below for both general categories. CDBG Program Funding Plan/Capital Projects The FY 2022-2023 CDBG Program Funding Plan includes the funding allocations for administration and planning, code enforcement in low- to 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, single- family rehabilitation grants and down payment assistance loans (Exhibit 2). The CDBG allowable cap of 20 percent for administration and fair housing services is estimated to be $1,128,127 for FY 2022-2023. 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 following capital improvement projects are recommended for funding in the plan: 1) $408,041 Police Athletic & Activities League ADA restrooms (design only) 2) $1,896,959 for residential street improvement in the Heninger Park neighborhood 3) $800,000 for Phase III of the Santa Anita Park Improvements project