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REQUEST FOR
COUNCIL ACTION
a
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
APRIL 05, 2010
TITLE: APPROVED
? As Recommended
PUBLIC HEARING -COMMUNITY ? As Amended
? Ordinance on 1S` Reading
DEVELOPMENT BLOCK GRANT ? Ordinance on 2"d Reading
PROGRAM FY 2010-2011 ? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
CITY MANAGER
RECOMMENDED ACTfON
1. Approve the proposed fiscal year 2010-2011 Community Development Block Grant
Program.
2. Authorize the City Manager to submit the approved program to the United States
Department of Housing and Urban Development for the City's fiscal year 2010-2011
allocation of Community Development Block Grant funds and execute the grant agreement
with the United States Department of Housing and Urban Development (HUD).
3. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the
Council to execute agreements with nonprofit agencies and/orsub-recipients awarded funds
as part of the approved program.
DISCUSSION
Since fiscal year 1974-1975, Santa Ana has received Community Development Block Grant
(CDBG) funds to improve low- and moderate-income neighborhoods, eliminate blight and create a
more stable economic base. These funds have been used for a diverse range of programs
including housing, street improvements, parks and public facilities improvements, social services,
historic preservation and community services. It is important to note that as of the date this
document was prepared, HUD has not notified the City of the actual amount of funds it will receive
for the aforementioned grants. For planning purposes, the City is estimating that the City's
entitlement for fiscal year 2010-2011 will be $7,375,000; An adjustment based on the final 2010-
2011 grant amount will be necessary when HUD publishes final numbers. The Public Facility
Improvements category will be adjusted to reflect any difference between the City's estimate and
the final grant amount. The funding allows for no more than fifteen percent of this entitlement to be
used for social service programs.
75A-1
Public Hearing -CDBG Program FY 2010-2011
April 05, 2010
Page 2
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 is 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 has made the difficult decision to limit the amount of CDBG
funds available for nonprofits for the 2010-2011 Fiscal Year to City-managed programs.
Therefore, request proposals for public services were not requested from the non-profit community.
The proposed fiscal year 2010-2011 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 $7,375,000.
APPROVED AS TO FUNDS AND ACCOUNTS:
Cynthi J. Nelso Francisco Gutierrez
Deputy City Manager for Development Executive Director r~"`~j
Services Finance & Management Services Agency
Community Development Agency
CJN/NTE/FH/kg
Exhibit 1: Program Recommendations
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PROPOSED 2010-11
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
2010-11 2010-11
STAFF
TAB REQUEST RECOMMENDATION
Administration & Plannina
1 City of Santa Ana/CDA-Administration $ 875,000 $ 875,000
2 Orange County Fair Housing Council $ 74,000 $ 74,000
Total Administration 8~ Planning $ 949,000 $ 949,000
Code Enforcement
3 City of Santa Ana/PBA & CAO-Code Enforcement $ 1,700,000 $ 1,700,000
Total Code Enforcement $ 1,700,000 $ 1,700,000
Public Services
4 City of Santa Ana-PRCSA-After School Tutoring $ 269,711 $ 250,000
5 City of Santa Ana-Police Dept.-Helicopter Program $ 600,000 $ 600,000
6 City of Santa Ana-PRCSA-Project PRIDE $ 158,619 $ 150,000
7 City of Santa Ana-PRCSA-Senior Health and Nutrition $ 131,118 $ 56,000
Total Public Services $ 1,159,448 $ 1,056,000
Capital Improvements
8 City of Santa Ana/CDA-Public Facility Improvement $ 2,500,000 $ 2,500,000
9 City of Santa Ana/PWA-Neighborhood Street Improvements $ 435,000 $ 455,000
10 City of Santa Ana/PRCSA-Neighborhood Park Improvements $ 450,000 $ 460,000
11 Millennium Dance Association $ 2,015,000 $ _
Total Capital Improvements $ 5,400,000 $ 3,415,000
Housing Rehabilitation
12 Paint Your Heart Oui $ 90,000 $ 90,000
13 Rebuilding Together O.C. $ 40,000 $ 40,000
14 City of Santa Ana/CDA-Multi-Family Rehab Loans $ 125,000 $ 125,000
Total Housing Rehabilitation $ 255,000 $ 255,000
TOTAL 9,463,448 7,375,000
Exhibit 1
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