20A - AA - ALLOCATION OF CDBG RECOVERY FUNDS

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 5, 2009 TITLE: APPROPRIATION ADJUSTMENT AND ALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT-RECOVERY PROGRAM FUNDS ~/- .~ CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 151 Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION Approve an appropriation adjustment recognizing American Recovery and Reinvestment Act Community Development Block Grant-Recovery funds (CDBG- R) in the amount of $1,852,245 awarded to the City of Santa Ana. DISCUSSION The American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated $1 billion for communities to carry-out the Community Development Block Grant-Recovery program. Under the terms of the funding distribution formula established by the U. S. Department of Housing and Urban Development (HUD), Santa Ana has been allocated $1,852,245. At the City Council meeting on June 1, 2009, the City Council approved the application package describing how the CDBG-R funds will be used. The CDBG-R funds will be allocated for neighborhood street improvement projects within low-moderate income areas and the administration of the grant. On August 25, 2009, HUD signed the City's CDBG-R agreement thereby approving the City's application and allowing the City to allocate the funds and initiate the eligible projects. FISCAL IMPACT The appropriation adjustment will recognize $1,852,245 in the CDBG-R Federal Aid Program revenue account (no. 13518002-52000) and appropriate same to the CDBG-R expenditure accounts (nos. 13518787-various). Funds will be utilized for eligible CDBG-R activities and for City administration charges. 20A-1