Title
a. Conduct a continued public hearing from March 12, 2013 to consider the funding allocation recommendations of the Community Development Block Grant (CDBG) Ad Hoc Committee for FY 2013/14.
b. Authorize the Director of Economic Development to execute agreements with the grantees.
Report
RECOMMENDATION
It is recommended that the Board of Supervisors:
a. Conduct a continued public hearing from March 12, 2013 to consider the funding allocation recommendations of the Community Development Block Grant (CDBG) Ad Hoc Committee for FY 2013/14.
b. Authorize the Director of Economic Development to execute agreements with the grantees.
SUMMARY
The U.S. Department of Housing and Urban Development (HUD) has qualified Monterey County together with the Cities of Del Rey Oaks and Gonzales as an Urban County for entitlement purposes. To receive the CDBG funding, the County must have an approved Consolidated Plan which includes an Action Plan and an Analysis of Impediments to Fair Housing. The Action Plan must include a description of eligible projects and programs to be funded. An Ad Hoc Committee has met and recommended allocations of CDBG funds. The approval of funding for projects and services will be incorporated into the Action Plan which will be issued for public comment in early April 2013. The Public Hearing is required as part of the process of allocating funds
BACKGROUND
On June 19, 2012, the County of Monterey approved the submittal of an application to HUD to become a direct entitlement Urban County. The County entered into a Joint Exercise of Powers and Cooperative Agreements with the Cities of Del Rey Oaks and Gonzales to meet the population and low/moderate income criteria for becoming an Urban County. On November 1, 2012, the County received HUD approval as an Urban County. On November 26, 2012, a Notice of Funding Availability (NOFA) was issued for future CDBG funds. On December 5, 2012, two application workshops for interested parties were held at the County Government Center. Eighteen applications for funding were received on January 2, 2013. None of the applications were responsive to fair housing services which are a required component of the HUD entitlement program. Therefore, a Request for Proposals was issued for fair housing on February 1, 2013. Two proposals were received by February 14, 2013.
DISCUSSION
As an Urban County, Monterey County will receive CDBG funding annually from HUD. The CDBG Urban County funding may be used to carry out a wide range of economic and community development activities directed toward promoting economic development, revitalizing neighborhoods, and providing improved community facilities and services which benefit low and moderate (Low/Mod) income persons. On February 12, 2013, the Board of Supervisors established an Ad Hoc Committee comprised of Supervisors Calcagno and Salinas to make recommendations for allocating CDBG funds. The Ad Hoc Committee met on February 19, 2013 and March 6, 2013, to consider the funding requests and made recommendations.
The Urban County CDBG grant award is estimated to be $800,000 for fiscal year 2013/14. Three types of activities can be undertaken: projects, services, and administration. Project activities are generally infrastructure or construction projects. Service activities are programs benefitting Low/Mod individuals. Administrative activities include direct and indirect costs associated with managing the grant. There are no restrictions on the amount of grant funds that can be allocated for project activities. There are limits placed on the other two activities. The total of public service contracts cannot exceed 15% of the total grant and a portion of these funds must be allocated for fair housing services. Administration cannot exceed 20% of the total grant.
In order to allocate CDBG funds to specific projects, the County initiated a public outreach campaign to collect input on community development objectives and projects. The outreach campaign included use of Survey Monkey web tool and public notices in English and Spanish published in four local newspapers. The County held three community meetings to introduce the Urban County's CDBG program and receive input on housing and community development needs from the public. Two workshops were held in December 2012 to educate the public about funding opportunities available through a Notice of Funding Availability (NOFA), which was distributed to over 200 agencies/jurisdictions/individuals in November 2102. Because the County did not receive responsive proposals for Fair Housing Counseling in response to the initial NOFA, a separate Request for Proposals was issued for these services on February 4, 2013.
Project Activities
The County received eight applications but one was subsequently withdrawn. The remaining requests totaled $1,509,511. The Ad Hoc Committee's recommendations are shown in Table A attached hereto. The Ad Hoc Committee also waitlisted two projects for funding in case any of the approved projects do not proceed.
City Participation
The City of Del Rey Oaks has been allocated $27,181 of which $24,463 is allocated to projects and $2,718 may be used to cover their administration program costs. The City of Gonzales has been allocated $144,422 of which $130,000 is allocated to projects and $14,442 may be used to cover their administration program costs. Each city has made funding decisions for project activities in their jurisdictions subject to ratification by the Board of Supervisors. The projects recommended by each City are shown in Tables B and C.
Public Service Activities
Four applications for service activities were received totaling $155,391. Staff and representatives of each City reviewed the applications and discussed the ranking and recommended funding levels which were then forwarded to each City Council for consideration and recommendation for approval by the Board of Supervisors. The Ad Hoc Committee then met and endorsed the recommendations.
In addition, two proposals for fair housing services were received totaling $44,880. Copies of these proposals are available at the Economic Development Department. Staff and representatives of each City and the Ad Hoc Committee reviewed the applications and made recommendations. Summaries of the requests and recommendations are shown in Table D.
Administration Allocation
HUD allows up to 20% of the grant to be allocated for administration of the grant. The bulk of the administration will be undertaken by the County. Each City has been allocated some administration funding to cover their administrative activity costs associated with the Urban County grant. A summary of the allocations is shown in Table E.
FINAL ALLOCATIONS
The recommended allocations are based upon an estimated HUD grant award of $800,000. Final funding recommendations and administration allocations are as follows: $542,000 for projects, $98,000 for services, and$160,000 for administration. If the grant award is announced prior to the adoption of the Action Plan on May 7, 2013, the Ad Hoc Committee will be reconvened to approve final allocations based upon the actual grant funding amount.
OTHER AGENCY INVOLVMENT
The Cities of Del Rey Oaks and Gonzales have partnered with the County to become a HUD designated Urban County.
FINANCING
There is no impact to the general fund. The CDBG is a three year duration and is funded annually. FY 2013-14 is estimated to be $800,000 for the first year. The County will receive approximately $133,000 for administrative costs. Notification of the grant award may be delayed due to the March 1 sequestration. This may delay implementation.
The grant will be budgeted in Community Development Grants, Fund 13, Unit Code 8200. When the grant is awarded, a separate Board action will be recommended to increase appropriations in Fund 13, Unit 8200, Appropriation Code DEO 003.
Prepared by:
_________________________
Jane Royer Barr, Ext. 5389
Housing Program Manager
Approved by:
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Dave L. Spaur, Ext. 5383
Director of Economic Development
Attachments: Requests For Funding Summary Tables A -E