75A - 03-04 REALLOCATE CDBG FUND

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PH - Amendment to the 2003-2004 Consolidated Plan Annual Action plan and Reallocation of 2003-2004 Community Development Block Grant Funds March 15, 2004 Page 2 Program (CSP) for the Drug Court After Care Program. Due to County funding reductions for the Drug Court After Care Program, CSP has notified the City that they are unable to carry out the Drug Court After Care Program for fiscal year 2003-04. On September 15, 2003, the National Council on Alcoholism and Drug Dependence of Orange County (NCADD-OC) submitted a proposal requesting that the CSP Drug Court After Care Program funding be reallocated to one of its subsidiaries, The Drug Court Foundation. The new program will continue to offer, and expand upon, the services that CSP, the previous provider, offered to the Drug Court program's participants and graduates. Services offered include educational and housing assistance, cultural awareness activities, support group guidance, and alumni outreach. In addition to the reallocation of CDBG funds, . the proposed amendment to the 2003-04 Annual Action Plan results from a notice issued by HUD in July 2003. This notice allows the City to utilize HUD's "uncapped" income standard for qualifying CDBG-funded activities. Each year HUD issues updated income guidelines for the CDBG program; however, due to unique language in the CDBG statute, the 80 percent median income standard may be artificially "capped" to a national average. In recent years HUD has given jurisdictions the option of using the capped or an uncapped 80 percent income standard (i.e.. the true 80 percent of the County's median income). In order to utilize the uncapped income standard, a community must inform the public it will use the uncapped standard via its Consolidated Plan and Annual Action Plan. Since HUD issued this authorizing notice after the 2003-04 Annual Action Plan was completed and approved by the City Council and HUD, an amendment is needed. Utilizing the uncapped income standard will not only allow the City to assist more low- and moderate-income households with both CDBG- and HOME-funded activities, but it allows the. City to add five Census Tract Block Groups to the City's low- and moderate-income area thus expanding the CDBG service area within the City. In accordance with HUD regulation, the amendments listed above are subject to a public hearing and a 30-day comment period. A public notice regarding this proposed amendment was published on January 15, 2004. The 30-day comment period ended February 17, 2004, at 5 p.m. 75A-2