DATE: November 28, 2018
TO: Community Service Commission
FROM: Deputy City Manager
SUBJECT
Title
Review and Comment on Proposed Contingency Plan for Allocation and Expenditure of Available Community Development Block Grant Funds
End
RECOMMENDATION
Recommendation
That the Community Services Commission reviews and comments on the proposed contingency plan for allocation and expenditure of available Community Development Block Grant (CDBG) funds.
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SUMMARY
Since 1975, the City of Hayward has administered Community Development Block Grant (CDBG) funds received from the U.S. Department of Housing and Urban Development (HUD). Annually, HUD conducts a point-in-time measure to assess an entitlement community's timely use of CDBG funds. To meet this "timeliness ratio," communities must have no more than 1.49 times their current program year entitlement.
On July 18, 2017, Council approved seven projects to apportion $1,289,000 in available CDBG funds. On May 15, 2018, staff presented an update to Council on the status of CDBG funds and requested that Council authorize the reallocation of $1,900,000 of available CDBG program funds to eligible projects.
In October 2018, the City contracted with HUD's recommended CDBG consultant, TDA Consulting to provide training and assistance in CDBG, financial management, policy and procedure, and reconciliation of past CDBG expenses and financial practices.
While considerable progress has been made towards utilization of excess CDBG funds, staff recommends approving a contingency plan, which allows for the reprograming and expenditure of up to $2,000,000 in available funds to CDBG eligible projects under the "Public Facilities and Infrastructure Improvements" as well as "Acquisition, Disposition, Clearance, Relocation." The exact amount remaining in the City of Hayward's Line of Credit Control System (LOCCS) balance will be determined later this month upon completion of th...
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