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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 15, 2014 <br />TITLE: <br />PUBLIC HEARING - COMMUNITY <br />DEVELOPMENT BLOCK GRANT <br />PROGRAM FY 2014 -2015 <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />I:A1»:ii]TL�I,j <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on I` Reading <br />❑ Ordinance on 2n4 Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Approve the proposed Fiscal Year 2014 -2015 Community Development Block Grant <br />Program. <br />Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the <br />Council to execute memorandums of understanding with various city departments and <br />agreements with nonprofit agencies awarded funds as part of the approved program. <br />DISCUSSION <br />The City of Santa Ana receives Community Development Block Grant (CDBG) funds to improve <br />low- and moderate - income neighborhoods, eliminate blight and create a more stable economic <br />base. These funds have been used for a diverse range of programs including housing, street <br />improvements, parks and public facilities improvements, social services, historic preservation and <br />community services. <br />In past years, the City used an application process to make public service funds available to non- <br />profit organizations that meet one of the priorities identified in the City's Consolidated Plan (the <br />City's five -year strategic plan that identifies housing and community needs that are required by the <br />U.S. Department of Housing and Urban Development [HUD]). Like communities throughout the <br />nation, Santa Ana endured serious budget challenges as a result of a declining economic climate. <br />These challenges included an increased demand for a variety of municipal services, the <br />elimination of redevelopment tax increment, the redirection of local revenues to the state, and an <br />overall decline in various tax revenues. To address these challenges, the City made the difficult <br />decision to limit the amount of CDBG funds available for non - profit organizations to City- managed <br />programs starting in Fiscal Year (FY) 2010 -2011. The same process was applied to allocate funds <br />for the FY 2014 -2015 and public service proposals were not requested from the non - profit <br />community. However, starting with FY 2015 -2016 funds, the process will revert back to soliciting <br />75B -1 <br />