BACKGROUND
The City became a CDBG entitlement jurisdiction in 1986. These annual grants fund affordable housing, public facilities and improvements, planning, program administration, and public service activities. The annual grant funding is allocated from the federal department of Housing and Urban Development (HUD), and the amount awarded to each program is subject to the federal budgeting process.
In June of 2023, City Council adopted the FY2023-24 estimated CDBG budget. HUD notified the City of its FY2023-24 entitlement award of $691,234 after the budget was adopted and approved. Staff then finalized and submitted the annual spending plan to HUD for approval. Following HUD's approval, Housing Division staff is requesting this budget adjustment to align the CDBG budget with the 2023-24 Action Plan.
On March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was enacted to provide emergency assistance and health care response for individuals, families, and businesses affected by the COVID-19 pandemic. In 2020, the City was awarded a total of $1,213,133 in the special allocation of CARES Act CDBG funds. Since then, $1,100,455 has been spent on various activities to prevent, prepare for, or respond to the coronavirus. The balance of the funds, in the amount of $112,677, is anticipated to be expended in FY2023-24.
The total funding available of $1,342,343 is comprised of $691,234 from the FY2023-24 grant award, unexpended funds of $488,431 from FY2020-23, $112,677 in CARES Act funding, and an estimated $50,000 in program income available to grant in FY2023-24.
On May 3, 2023, Council approved the Annual Action Plan for FY2023-24. The plan included funding for six public services projects, an affordable housing acquisition project; owner-occupied housing rehabilitation projects; and administrative expenses.