To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
Community Development Block Grant (CDBG) Program Annual Action Plan
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the Community Development Block Grant (CDBG) Fiscal Year 2023-2024 Annual Action Plan (the “Annual Action Plan”) and program budget, approving program certifications, authorizing the City Manager to execute all documents and determining that the actions authorized by this resolution are either not subject to CEQA or are exempt from CEQA.
Body
DISCUSSION:
The CDBG Annual Action Plan identifies specifically how the City’s CDBG funding shall be allocated for Fiscal Year 2023-2024. This must be prepared in accordance with the priorities identified in the City of Napa 2020-2025 Consolidated Plan.
The total available CDBG funding for Fiscal Year 2023-2024 is $608,869. This includes $583,765 in CDBG grant funds and $25,104, which is 20% of anticipated program income from the City’s revolving loan fund. Based on previous year’s HUD guidance, the City can utilize 20% of revolving loan fund repayments for its CDBG activities, with the remaining 80% in the revolving loan fund to be used specifically for rehab loans and grants.
Under CDBG regulations, up to 20% of the City’s CDBG grant plus the current year’s program income that is not kept in a revolving loan fund, is available for planning and administration. No more than 15% of the CDBG grant and previous year’s program income may be used on public service activities. The remaining funds must be spent on Community Development activities.
The CDBG Citizens’ Advisory Committee reviewed and rated applications and made funding recommendations in March. The amount of funding requested by applicants exceeded available funding by over $253,000, requiring the CDBG Citizens’ Advisory Committee to make some difficult choices.
At the CDBG Citizens’ Advisory Committee meeting on March 6, 2023, applicants presented their applications and funding requests. The CDBG Citizens’ Advisory Committee did not recommend funding for two applications. The following funding allocations have been recommended by the CDBG Citizens’ Advisory Committee and have been incorporated into the City’s Fiscal Year 2023-2024 Annual Action Plan and Program Budget:
• CDBG planning and administration: $121,750
• Catholic Charities’ Rainbow House Family Shelter services (public service): $8,876
• Puertas Abiertas Promotoras Program (public service): $35,714
• Napa Emergency Women’s Services for bilingual case manager (public service): $30,000
• Fair Housing Napa Valley (public service): $45,000
• Housing Rehabilitation Program (community development): $367,529
FINANCIAL IMPACTS:
Approval of the City’s Fiscal Year 2023-2024 Annual Action Plan and CDBG Program budget will commit $608,869 to the activities described above. The CDBG Program budget has been incorporated into the City’s budget for Fiscal Year 2023-2024. No General Funds are committed by this action.
CEQA:
Staff recommends that the City Council determine that the individual activities and projects contemplated under the Consolidated and Annual Plans and CDBG Budget are either 1) not subject to CEQA pursuant to CEQA Guidelines Section 15060(c), as they will not result in a direct or reasonably foreseeable indirect physical effect on the environment; or 2) exempt from CEQA pursuant to CEQA Guidelines Section 15301, which exempts the repair or minor alteration of existing private and public structures, streets, sidewalks and gutters.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution adopting Annual Plan and CDBG Program Budget with Exhibits “A”, “B”, “C”, “D”, and “E”
EX A - Draft Annual Action Plan
EX B - CDBG Funding Chart
EX C - CDBG Certifications
EX D - SF424
EX E - SF424D
NOTIFICATION:
Notice announcing the availability of the Draft Annual Action Plan for a 30-day public review was published in the Napa Valley Register on April 5, 2023. Notice was also placed on the City’s website and posted at Hispanic markets and laundromats. Copies of the Draft Annual Action Plan were posted on the Housing Division website. Copies of this staff report were e-mailed to the CDBG Citizens’ Advisory Committee and CDBG applicants.