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HomeMy WebLinkAbout75A - PH - CDBG 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 75A-2 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 75A-3 7 5A-4