DATE: May 14, 2019
TO: Mayor and City Council
FROM: Deputy City Manager
SUBJECT
Title
Approval of FY 2020 Community Agency Funding Recommendations and FY 2020 Community Development Block Grant Annual Action Plan
End
RECOMMENDATION
Recommendation
That Council:
1. Affirms the Community Services Commission’s FY 2020 community agency funding recommendations as outlined in Attachment II, with final Council authorization of funding allocations for the Social Services and Arts and Music categories made within the context of the Council’s FY 2020 budget to be adopted in May 2019;
2. Adopts a resolution (Attachment III) authorizing the City Manager to submit an application for the Community Development Block Grant (CDBG) Program for U.S. Department of Housing and Urban Development (HUD) Program Year 2019, including the City of Hayward Fiscal Year 2020 CDBG Annual Action Plan with the FY 2020 CDBG funding allocations; and
3. Reviews recent projects completed to meet timeliness. End
SUMMARY
FY 2020 Community Agency Funding
The total funding available as part of the FY 2020 Community Agency Funding process is $1,686,847. Listed below is a summary of the funding recommendations.
In total, $873,551 of CDBG funds are recommended in the Infrastructure, Economic Development, Public Services, and Fair Housing categories, and $536,950 from General Fund is recommended for funding in the Arts & Music, Social Services, and Referral Services categories. Attachment II provides a more detailed summary of the Community Services Commission recommendations by category, agency, program, and funding amounts. The funding recommendations in this report include Council’s feedback from the April 2, 2019 Council work session.
In April 2019, the City was notified of its FY 2020 CDBG entitlement in the amount of $1,502,138. Table 2 provides a summary of all anticipated CDBG resources for FY 2020.
Table 2: Anticipated Resources
Anticipated Resources Program Year 2019 Funding Amount
Annual Allocation $1,502,138
Program Income: $188,205
Prior Year Resources $515,000
Total: $2,205,343
FY 2020 CDBG Annual Action Plan
In the City’s draft Annual Action Plan, staff proposes to allocate CDBG funding as follows:
Table 3: Summary Funding by Project Category
No. Project
Category Program Year 2019 Funding Allocation
1. Administration & Planning $300,427
2. Acquisition, Disposition, Clearance & Relocation $571,366
3. Economic Development $339,999
4. Housing $300,000
5. Public Facilities & Infrastructure Improvements $440,000
6. Public Services $253,551
Total $2,205,343
FY 2019 Timeliness Update
The CDBG program annually provides formula entitlement grants to states and local governments with populations greater than 50,000. Annually on May 2, 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 in fund reserves.
In December 2018, staff sought guidance from Council and approval of a contingency plan to re-allocate up to $1.75M in available CDBG funds to eligible projects. After successfully spending down the City’s CDBG fund balance, the City’s current timeliness ratio is 1.27, and by the end of the Fiscal Year will be below 1.0. In total across FY 2019, the City of Hayward spent $4.6M in CDBG funds to create and maintain affordable housing, prevent homelessness, provide services for low-income and individuals and families, improve public facilities, and create economic development opportunities for all.
ATTACHMENTS
Attachment I Staff Report
Attachment II CDBG and Social Services Final Funding
Attachment III Resolution