To: Honorable Mayor and Members of City Council
From: Vincent Smith, Community Development Director
Prepared By: Lark Ferrell, Housing Manager
TITLE:
Title
Community Development Block Grant Disaster Recovery (CDBG-DR) Budget Adjustment
LABEL
RECOMMENDED ACTION:
Recommendation
Approve both revenue and expenditure budget adjustments to appropriate the grant revenue in the CDBG-DR Fund in the amount of $420,094 for affordable multifamily housing projects, as documented in Budget Adjustment No. BE2204501.
Body
DISCUSSION:
The City was previously awarded $2,889,774 in Community Development Block Grant Disaster Recovery (CDBG-DR) through the State of California. This funding was awarded as a result of the 2017 North Bay wildfires and must be used for affordable multifamily housing projects in the City of Napa. The County of Napa was awarded $420,094 in CDBG-DR funds. However, the County of Napa later relinquished this funding based on the State’s recommendation to consolidate these funds with the City’s CDBG-DR funds. On October 15, 2021, the City Council authorized the City to submit an amended CDBG-DR grant application for these additional $420,094 in CDBG-DR funds. The State recently approved the City’s amended application. This brings the City’s total CDBG-DR grant to $3,309,868. Because this additional funding was not anticipated when the Fiscal Year 2021-2022 budget was adopted, a budget adjustment is needed for the additional grant revenue and expenditures.
On December 21, 2021, the City Council authorized submitting a project application to the State to allocate $386,487 of this additional CDBG-DR funding to Burbank Housing Development Corporation for the 55-unit Valley Lodge Apartments (formerly known as Wine Valley Lodge) project located at 200 South Coombs Street. The remaining $33,607 would be used for various activity delivery costs associated with managing the CDBG-DR grant.
FINANCIAL IMPACTS:
There is no impact to the General Fund by this action. Approval of this item would approve a $420,094 budget adjustment to both revenues and expenditures in the CDBG-DR Fund to reflect the CDBG-DR grant award and associated grant-funded expenditures.
CEQA:
The Community Development Director has determined that the Recommended Action described in this Staff report is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Budget Adjustment Form No. BE2204501
NOTIFICATION:
Notice of this item was placed on an agenda at least 72 hours in advance of the meeting.