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Fiscal Year 2018 — 2019 CDBG Program
<br />May 1, 2018
<br />Page 3
<br />DISCUSSION
<br />The City of Santa Ana receives an annual allocation of Community Development Block Grant
<br />(CDBG) Program funds from the United States Department of Housing and Urban Development
<br />(HUD) to improve low to moderate -income neighborhoods, eliminate blight and create a more
<br />stable economic base. These funds may be used for a diverse range of programs including
<br />affordable housing, street improvements, park and public facilities improvements, economic
<br />development, code enforcement and public services. The City's estimated CDBG allocation for
<br />Grant Year (GY) 2018, Fiscal Year (FY) 2018 - 2019, is $5,284,239.
<br />The proposed FY 2018 - 2019 CDBG Program and Funding Plan consists of the Community
<br />Redevelopment and Housing Commission's (CRHC) funding recommendations for nonprofit
<br />public service programs and staffs funding recommendations for Administration and Planning,
<br />Code Enforcement, Economic Development, City Capital Improvements, and Housing. The
<br />CDBG Program and Funding Plan can be summarized in two general categories: Capital
<br />Projects/CDBG Program Funding Plan and Public Services. A summary of the process and
<br />allocation for the FY 2018 - 2019 CDBG Program is provided below for both general categories.
<br />Capital Projects/CDBG Program Funding Plan:
<br />The FY 2018 - 2019 CDBG Program Funding Plan includes the funding allocations for
<br />administration, fair housing, nonprofit public services, code enforcement in low- to moderate -
<br />income areas of the city to address health and safety violations, economic development to
<br />provide small business grants, residential street improvements, park improvements, multi -family
<br />rehabilitation loans, single-family rehabilitation loans, and homebuyer down payment assistance
<br />loans as described in the CDBG FY 2018 — 2019 Program Summaries (Exhibit 1). The CDBG
<br />allowable cap of 20 percent for administration and fair housing services is estimated to be
<br />$1,056,847 for FY 2018 - 2019. Administration is necessary for staffing, compliance, reporting,
<br />fiscal management, and monitoring of the entire program. Fair housing is necessary due to
<br />CDBG requirements that the City affirmatively further fair housing. The programs and projects
<br />have been determined to be of highest priority and need by the Executive Directors of the Parks,
<br />Recreation and Community Services Agency, Public Works Agency, Planning and Building
<br />Agency and Community Development Agency following the City's internal application process
<br />and the competitive public service allocation process described below.
<br />Public Services:
<br />A maximum of 15 percent of CDBG funding, estimated to be $792,635 for FY 2018 - 2019, may
<br />be used for public services. For FY 2018 - 2019, the City is providing the entire estimated public
<br />service allocation to nonprofit organizations for programs with an emphasis on crime prevention,
<br />intervention, and/or suppression for children, youth, and families (Exhibit 2). A new subcategory
<br />of funding was also made available for a Summer Night Lights Pilot Program.
<br />Following approval by City Council on December 19, 2017, the City solicited applications from
<br />nonprofit organizations from January 9, 2018 to February 5, 2018 and improved the application
<br />process by use of an online application system. Marketing of the CDBG application process and
<br />nonprofit outreach efforts included a press release, use of social media (via the City's Facebook
<br />page), e-mails to a nonprofit organization distribution list, mailings to nonprofits, and a dedicated
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