75A - CDBG FUNDING 2011-2012 - Laserfiche WebLink

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Public Hearing - CDBG Program FY 2011-2012 April 4, 2011 Page 2 determining the adjustment and final allocation. The CDBG federal regulations allow no more than 15% of this entitlement to be used for social service programs and no more than 20% for administration and planning. In past years, the City has used an application process to make public service funds available to nonprofit organizations that meet one of the priorities identified in the City's Consolidated Plan (the City's five-year strategic plan that identifies housing and community needs that are required by HUD). Like communities throughout the nation, the current economic climate continues to present serious budget challenges to Santa Ana. These challenges include an increased demand for a variety of municipal services, the redirection of local revenues to the state, and an overall decline in various tax revenues. To address these challenges, the City continues to make the difficult decision to limit the amount of CDBG funds available for nonprofits for the 2011-2012 Fiscal Year to City-managed programs. Therefore, public service proposals were not requested from the non-profit community. The proposed Fiscal Year 2011-2012 CDBG program and budget (Exhibit 1) consists of the staffs funding recommendations for the program. The City Council public hearing will provide an opportunity for public input and the completion of the process necessary to submit our locally approved program to HUD. FISCAL IMPACT Approval of the recommended action will authorize the City Manager to submit the approved program to HUD and to execute a grant agreement, which will result in the City's CDBG letter of credit being augmented by an estimated $6,800,000. APPROVED AS TO FUNDS AND ACCOUNTS: _ Ay) Nancy T. E ards Francisco Gutierrez Interim Exec tive Director, Executive Director Community Development Agency Finance & Management Services Agency NTE/FH/kg Exhibit: 1: Program Recommendations 75A-2