Item 22 - Fiscal Year 2021-2022 Annual Action Plan and Budgets for CDBG, HOME & ESG Programs

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Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 3 6 8 0 budgets for the CDBG and ESG program in two separate staff reports. This is the first year in which all three budgets for the CDBG, HOME and ESG programs have been combined into one single staff report. Since all three programs are included in the City’s Annual Action Plan, staff combined all three program budgets into one staff report. This is consistent with how other similarly sized cities approve their Annual Action Plan and funding allocations for the CBDG, HOME and ESG programs. 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 CDBG allocation for Grant Year (GY) 2021, FY 2021-2022, is $5,558,720. The proposed FY 2021-2022 CDBG Program and Funding Plan consists of the CDC funding recommendations for nonprofit public service programs from 2020 and staff’s funding recommendations from this year 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 2021-2022 CDBG Program is provided below for both general categories. Capital Projects/CDBG Program Funding Plan The FY 2021-2022 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 and single- family rehabilitation loans (Exhibit 2). The CDBG allowable cap of 20 percent for administration and fair housing services is estimated to be $1,111,744 for FY 2021-2022. 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. Four new city capital improvement projects are recommended for funding, which include the following: 1) $554,582 for ADA curb ramp improvements in CDBG eligible areas. 2) $1,100,000 for residential street improvement in the Heninger Neighborhood. 3) $600,000 for Phase II of the Santa Anita Park Improvements. 4) $400,000 for sidewalk improvements in CDBG eligible areas. 5) $300,000 for active transportation safety improvements to enhance the safety of the local community with the installation of pedestrian hybrid rapid flashing beacons.