DATE: May 15, 2018
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Title
Status Update of the Fiscal Year (FY) 2018 approved Community Development Block Grant (CDBG) Biennial Fund Projects and review of the FY 2019 proposed Projects and Authorization to Reallocate $1.9 Million of unspent CDBG funds to Eligible Projects in FY 2019 End
RECOMMENDATION
Recommendation
That Council reviews and comments on the FY 2018 - 2019 CDBG Biennial Fund Projects underway and approves a resolution authorizing the reallocation of $1.9M of unspent CDBG program funds to the following eligible projects in FY 2019:
1. Provide CDBG funds as Measure A1 match for pre-development and site acquisition costs to qualified developers in the amount of $800,000;
2. Execute a contract with a non-profit housing agency to manage the Housing Rehabilitation Loan Program in the amount of $100,000; and
3. Execute a contract with St. Rose Hospital for lab equipment and related equipment purchases in the amount of $1,000,000.
EndSUMMARY
This report provides a status update on the implementation of the 7 projects authorized by Council on July 18, 2017. In 2017, the Department of Housing and Urban Development (HUD) sent notice that the City of Hayward failed to meet its "timeliness-ratio test" to reduce fund balance below 1.5 times entitlement, measured 60 days prior to the end of the program year (May 2, 2017). The City of Hayward submitted a plan of corrective actions to resolve the underlying planning and administrative problems contributing to the timeliness issue. The plan consisted of the implementation of the 7 projects authorized by Council on July 18, 2017. The July 18, 2017 staff report is attached for reference (Attachment II).
Despite progress made towards utilization of the funds this past year, including executed contracts, the City anticipates it will not meet the HUD timeliness requirement for a second year. Staff expec...
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