HomeMy WebLinkAboutItem 08 - $81,915 Additional Community Development Block Grant Funds Community Development Agency
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Item # 8
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 6, 2021
TOPIC: Appropriation Adjustment of $81,915 Additional Community Development Block
Grant Funds
AGENDA TITLE:
Approve an Appropriation Adjustment of $81,915 to the Fiscal Year 2021-22 Budget for
the Community Development Block Grant Program (Non-General Fund)
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $81,915 in additional Community
Development Block Grant funds from the U.S. Department of Housing and Urban
Development in revenue account and appropriating same to expenditure account for
Fiscal Year 2021-22.
2. Approve a new Fiscal Year 2021 CDBG Program Budget to include an increase of
$65,532 to our Community Development Block Grant, Single Family Rehabilitation
Projects and a proportional increase in our allowable administrative costs of $16,383.
DISCUSSION
On February 25, 2021, the City received an official notice from the U.S. Department of
Housing and Urban Development (HUD) with our Fiscal Year (FY) 2021 allocations for
our Community Development Block Grant (CDBG), HOME Investment Partnerships, and
Emergency Solutions Grant (ESG) Programs. The FY 2021 allocations were as follows:
CDBG – $5,558,720, HOME – $1,706,231, and ESG – $489,141. City Council approved
the program budgets and appropriations for these funds on May 4, 2021.
However, on May 13, 2021, HUD sent a new official notice informing the City that there
was a revised calculation of our FY 2021 CDBG allocation. Specifically, our FY 2021
CDBG allocation increased from $5,558,720 to $5,640,635, equal to a difference of
$81,915. To allocate these additional funds, staff is recommending approval of an
appropriation adjustment to recognize these new funds in our FY 2021 CDBG Program
Budget and approval of a new FY 2021 CDBG Program Budget to include an increase of
$65,532 to our Single Family Rehabilitation Projects and a proportional increase in our
allowable Administrative costs of $16,383.
Appropriation Adjustment of $81,915 Additional Community Development Block Grant
Funds
July 6, 2021
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FISCAL IMPACT
Approval of the appropriation adjustment will recognize $81,915 in the Community
Development Block Grant revenue account (No. 13518002-52000) for expenditure as
follows:
EXHIBIT(S)
1. HUD’s Original FY 2021 Allocation Letter from February 25, 2021
2. HUD’s Corrected FY 2021 Allocation Letter from May 13, 2021
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
Fiscal
Year
Grant
Year
Accounting
Unit-Account
Fund
Description
Accounting Unit,
Account
Description
Amount
FY 21-
22 2021 13518780-
62300
Community
Development
Block Grant
CDBG
Administration,
Contract Services-
Professional
$16,383
FY 21-
22 2021 13518782-
69135
Community
Development
Block Grant
CDBG Housing,
Payment to
Subagent
$65,532
Total $81,915
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-7000
ASSISTANT SECRETARY FOR
COMMUNITY PLANNING AND DEVELOPMENT
www.hud.gov espanol.hud.gov
February 25, 2021
The Honorable Vicente Sarmiento
Mayor of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701-4058
Dear Mayor Sarmiento:
I am pleased to inform you of your jurisdiction’s Fiscal Year (FY) 2021 allocations for the
Office of Community Planning and Development’s (CPD) formula programs, which provide
funding for housing, community and economic development activities, and assistance for low- and
moderate-income persons and special needs populations across the country. Public Law 116-260
includes FY 2021 funding for these programs. Your jurisdiction’s FY 2021 available amounts are
as follows:
Community Development Block Grant (CDBG) $5,558,720
Recover Housing Program (RHP) $ 0
HOME Investment Partnerships (HOME) $1,706,231
Housing Opportunities for Persons With AIDS (HOPWA) $ 0
Emergency Solutions Grant (ESG) $489,141
Individuals and families across the country are struggling in the face of four converging
crises: the COVID-19 pandemic, the resulting economic crisis, climate change, and racial inequity.
Through these bedrock programs, CPD seeks to develop strong communities by promoting
integrated approaches that provide decent housing and suitable living environments while
expanding economic opportunities for low- and moderate-income and special needs populations,
including people living with HIV/AIDS. We urge grantees to strategically plan the disbursement of
grant funds to provide relief for those affected by these converging crises and help move our
country toward a robust recovery.
Based on your jurisdiction’s CDBG allocation for this year, you also have $17,793,600 in
available Section 108 borrowing authority. Since Section 108 loans are federally guaranteed, this
program can leverage your jurisdiction’s existing CDBG funding to access low-interest, long-term
financing to invest in Opportunity Zones or other target areas in your jurisdiction.
Because the funds are not appropriated by Congress, Housing Trust Fund (HTF) formula
allocations will be announced at a later date under separate cover.
EXHIBIT 1
HUD continues to emphasize the importance of effective performance measurements in all its
formula grant programs. Proper reporting in the Integrated Disbursement and Information System
(IDIS) is critical to ensure grantees comply with program requirements and policies, provide
demographic and income information about the persons that benefited from a community's
activities, and participate in HUD-directed grantee monitoring. Your ongoing attention to ensuring
complete and accurate reporting of performance measurement data continues to be an invaluable
resource with regard to the impact of these formula grant programs.
The Office of Community Planning and Development is looking forward to working with you
to promote simple steps that will enhance the performance of these critical programs and
successfully meet the challenges that our communities face. If you or any member of your staff have
questions, please contact your local CPD Office Director.
Sincerely,
James Arthur Jemison II
Principal Deputy Assistant Secretary
for Community Planning and Development
EXHIBIT 1
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-7000
OFFICE OF COMMUNITY PLANNING
AND DEVELOPMENT
www.hud.gov espanol.hud.gov
May 13, 2021
The Honorable Vicente Sarmiento
Mayor of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701-4058
Dear Mayor Sarmiento:
I am pleased to inform you of your jurisdiction’s Fiscal Year (FY) 2021 allocations for the
Office of Community Planning and Development’s (CPD) formula programs, which provide
funding for housing, community and economic development activities, and assistance for low- and
moderate-income persons and special needs populations across the country. Public Law 116-260
includes FY 2021 funding for these programs. Please note that this letter reflects a revised amount
for the Community Development Block Grant and Section 108 borrowing authority. Your
jurisdiction’s FY 2021 available amounts are as follows:
Community Development Block Grant (CDBG) $5,640,635
Recovery Housing Program (RHP) $0
HOME Investment Partnerships (HOME)$1,706,231
Housing Opportunities for Persons With AIDS (HOPWA)$0
Emergency Solutions Grant (ESG) $489,141
Individuals and families across the country are struggling in the face of four converging
crises: the COVID-19 pandemic, the resulting economic crisis, climate change, and racial inequity.
Through these bedrock programs, CPD seeks to develop strong communities by promoting
integrated approaches that provide decent housing and suitable living environments while
expanding economic opportunities for low- and moderate-income and special needs populations,
including people living with HIV/AIDS. We urge grantees to strategically plan the disbursement of
grant funds to provide relief for those affected by these converging crises and help move our
country toward a robust recovery.
Based on your jurisdiction’s CDBG allocation for this year, you also have $18,203,175 in
available Section 108 borrowing authority. Since Section 108 loans are federally guaranteed, this
program can leverage your jurisdiction’s existing CDBG funding to access low-interest, long-term
financing to invest in Opportunity Zones or other target areas in your jurisdiction.
HUD continues to emphasize the importance of effective performance measurements in all its
formula grant programs. Proper reporting in the Integrated Disbursement and Information System
(IDIS) is critical to ensure grantees comply with program requirements and policies, provide
demographic and income information about the persons that benefited from a community's
activities, and participate in HUD-directed grantee monitoring. Your ongoing attention to ensuring
EXHIBIT 2
complete and accurate reporting of performance measurement data continues to be an invaluable
resource with regard to the impact of these formula grant programs.
The Office of Community Planning and Development is looking forward to working with you
to promote simple steps that will enhance the performance of these critical programs and
successfully meet the challenges that our communities face. If you or any member of your staff have
questions, please contact your local CPD Office Director.
Sincerely,
James Arthur Jemison II
Principal Deputy Assistant Secretary
for Community Planning and Development
EXHIBIT 2