20C - AA CDBG ESG HIPPF CIP FY 17 18

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Appropriation Adjustment — CDBG, ESG and HOME Funds November 21, 2017 Page 2 City is required to submit an Annual Action Plan that establishes a one-year investment plan outlining the intended use of resources in the forthcoming fiscal year. On April 18, 2017, the City Council approved and authorized the submission of the 2017-2018 Annual Action Plan to HUD with anticipated formula grant allocations. Because HUD had not yet released funding for the upcoming fiscal year, the City anticipated funds to be received based on past years allocations. Actual allocation amounts from HUD to Santa Ana for Program Year 2017-2018 are higher than anticipated and are shown in the table below: Program Anticipated Allocation Actual Allocation Difference CDBG $5,127,675 $5,284,239 $156,564 HOME $1,104,000 $1,207,942 $103,942 ESG $ 474,526 $ 475,909 $ 1,383 CDBG Program On April 18, 2017, City Council approved the Fiscal Year 2017-2018 CDBG Program with an estimated amount of $5,127,675 in Grant Year (GY) 2017 funding, subject to adjustment upon notification of the GY 2017 award from the HUD. The action authorized staff to adjust the allocations proportionately once the actual CDBG allocation for GY 2017 was received from HUD. This appropriation adjustment increases GY 2017 CDBG funding by 3.01%, in the amount of $156,564, proportionately to all CDBG programs including administration, code enforcement, economic development, public services, city capital improvements, and housing. Staff is requesting approval to appropriate these funds from the CDBG program and amend the FY 2017/18 Capital Improvement Program (CIP) accordingly (Exhibit). ESG Program The increased ESG allocation in the amount of $1,383 will be distributed to current ESG programs to provide homeless service providers additional funds. This will be presented to City Council in a separate action item as an amendment to agreements with subrecipients and memorandums of understanding with City agencies. HOME ProgramThe increased HOME allocation in the amount of $103,942 will be distributed to Affordable Rental Housing (75 percent), Community Housing Development Organizations set- aside (15 percent), and administration of the HOME program (10 percent). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #6, (Focus projects and programs on improving the health and wellness of all residents). 20Ci-2