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a. Conduct a public hearing to obtain residents’ views and respond to proposals and questions received during the preceding 30-day public comment period regarding the Urban County Community Development Block Grant (CDBG) 2025-2029 Consolidated Plan and Annual Action Plan (AAP) for Fiscal Year (FY) 2025-26 and proposed allocation of $1,436,390;
b. Receive and adopt the 2025-2029 Consolidated Plan which includes the FY 2025-26 AAP and funding recommendations for FY 2025-26;
c. Authorize the Director of Housing and Community Development (HCD) or their designee to submit the 2025-2029 Consolidated Plan to the U.S. Department of Housing and Urban Development (HUD) and execute documents required by HUD to implement the 2025-2029 Consolidated Plan;
f. Approve the Subrecipient Agreement template for use with the Urban County program;
g. Authorize the Director of HCD or their designee to execute Subrecipient Agreements with Urban County Grantees, including making minor changes as necessary and to reflect the actual CDBG award received from HUD, subject to review and approval by County Counsel, to implement the FY 2025-26 AAP; and,
f. Adopt a Resolution authorizing the Director of HCD or their designee to sign documentation required for environmental reviews associated with projects funded with CDBG.
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RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Conduct a public hearing to obtain residents’ views and respond to proposals and questions received during the preceding 30-day public comment period regarding the Urban County Community Development Block Grant (CDBG) 2025-2029 Consolidated Plan and Annual Action Plan (AAP) for Fiscal Year (FY) 2025-26 and proposed allocation of $1,436,390;
b. Receive and adopt the 2025-2029 Consolidated Plan which includes the FY 2025-26 AAP and funding recommendations for FY 2025-26;
c. Authorize the Director of Housing and Community Development (HCD) or their designee to submit the 2025-2029 Consolidated Plan to the U.S. Department of Housing and Urban Development (HUD) and execute documents required by HUD to implement the 2025-2029 Consolidated Plan;
f. Approve the Subrecipient Agreement template for use with the Urban County program;
g. Authorize the Director of HCD or their designee to execute Subrecipient Agreements with Urban County Grantees, including making minor changes as necessary and to reflect the actual CDBG award received from HUD, subject to review and approval by County Counsel, to implement the FY 2025-26 AAP; and,
f. Adopt a Resolution authorizing the Director of HCD or their designee to sign documentation required for environmental reviews associated with projects funded with CDBG.
SUMMARY:
The County of Monterey first qualified to receive CDBG funding directly from HUD in 2013 as an entitlement jurisdiction. As part of the process to qualify for designation as an Entitlement Community, the County is required to prepare a Consolidated Plan at least once every five years. The recommended actions will satisfy HUD’s requirement that the County prepare and adopt a new Consolidated Plan that will guide how the County uses its CDBG funds to meet eligible community development needs through 2029.
CDBG funds may be used to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. As an entitlement community, the County and its consortium members must prioritize activities, which primarily benefit low- and moderate-income persons. Other eligible activities may aid in the prevention or elimination of slums or blight and activities that meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet one of these national objectives.
DISCUSSION:
Please refer to Attachment A for the discussion of this agenda item.
OTHER AGENCY INVOLVEMENT:
The cities of Gonzales, Greenfield, Marina, and Sand City have partnered with the County to, collectively, be designated as an Urban County. County staff made recommendations for projects to the Standing Committee. Staff from three of the cities and the County made recommendations to the Standing Committee about funding for public services and public facilities. On March 10, 2025, the Standing Committee reviewed the applications and made recommendations for funding that are included in the Draft Consolidated Plan, which includes the AAP. County Counsel has reviewed the Consolidated Plan and Subrecipient Agreement template as to form.
FINANCING:
The HUD grant is an annual agreement. If the County complies with grant requirements, the County may elect to continue to receive annual entitlement funding, subject to the federal budget process.
HCD has included $2,854,479 in its FY 2025-26 Requested Budget based on an estimate of the HUD 2025-26 funding amount ($1,426,390), anticipated Program Revenue in Fund 013, Budget Unit 8546 (Community Development Grants), Appropriation Unit HCD005 ($10,000), unspent prior year funds for projects approved prior to this FY ($1,418,089). There is no impact to the General Fund because of the Board’s approval of the AAP.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Authorizing the Urban County to post the FY 2025-26 Consolidated Plan is the first step toward making an anticipated $1,436,390 available to help local jurisdictions make improvements to public facilities, provide food security for seniors, help children and youth develop the social skills they need to be successful in life, and help homeless persons find shelter.
Mark a check to the related Board of Supervisors Strategic Initiatives
X Economic Development
X Administration
X Health & Human Services
X Infrastructure
X Public Safety
Prepared by: Dawn M. Yonemitsu, Management Analyst II, x5387
Reviewed by: Darby Marshall, Housing Program Manager, x5391
Approved by: Craig W. Spencer, Director of Housing and Community Development
The following attachments are on file with the Clerk of the Board:
Attachment A - Discussion
Attachment A1 - Anticipated Funding Distribution
Attachment A2 - Application Summary & Funding Recommendations
Attachment B - Draft Consolidated Plan
Attachment C - 2025 Subrecipient Agreement Template
Attachment D - Draft Resolution Delegation of Authority