Title
FY 2021-22 Community Development Block Grant (CDBG) Public Services Funding Recommendations
Body
To: Honorable President Christine Chilcott and Members of the Social Service Human Relations Board
BACKGROUND
On January 15, 2020, as part of the annual Community Development Block Grant (CDBG) process, the City of Alameda (City) released the CDBG Fiscal Year (FY) 2020-21 and 2021-22 Notice of Funding Availability (NOFA) and Request for Proposals. The City is now in the second year of the two-year agreements that were awarded through that NOFA. Therefore, the funding allocations recommended in this staff report shall cover FY 2021-22 only.
On February 25, 2021, the U.S. Department of Housing & Urban Development (HUD) announced the FY 2021-22 CDBG entitlement allocations. The City shall receive an award of $1,141,479, which is down 1.7% from last year’s award of $1,161,287. Up to 15% of the award may be allocated to public services. In addition to CDBG entitlement funding, the Public Service sub-recipients may receive up to 15% of program income from FY 2020-21.
At the April 22 SSHRB meeting, staff will briefly review the CDBG funding amounts and staff recommendations. After the presentation, the Board will hear public comment and recommend the organizations and funding amounts for the Public Services funding. Staff will present the recommendations to City Council during the May 4, 2021 Public Hearing.
DISCUSSION
Last year, through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, HUD was authorized to loosen some of the constraints for CDBG allocations for FY 2019-20 and FY 2020-21, including suspending the 15% cap on public services. Funds which were used to address the community needs that were exacerbated by the COVID-19 health pandemic were excluded from the Public Services cap. That exception does not apply to FY 2021-22 CDBG funds.
Funding Availability
CDBG Public Services funding comes from two sources - the current year CDBG entitlement and CDBG program income from the previous fiscal year.
On February 25, 2021, HUD published its entitlement allocations for CDBG FY 2021-22. The City was awarded $1,141,479, which is down 1.7% from last year’s award of $1,161,287. HUD requires that Public Services funding be capped at 15% of the current year’s grant allocation, plus program income received in the previous fiscal year. Therefore, $171,221 of the entitlement may be allocated to public services.
Staff projects to receive $110,076 of program income in FY 2020-21, based on the loan payments received this fiscal year. This is compared to $323,000 (i.e., only 34%) of the program income generated in the previous fiscal year when there were two large loan payoffs. Consequently, the total funding available for Public Service is down more than 16% from last year. Fifteen percent (15%) of program income yields an additional $16,511 for a total of $187,732 available for Public Services in FY 2020-21.
Staff will continue to monitor the receipt of program income and adjust the numbers accordingly prior to submitting the final Action Plan to HUD by May 14, 2021. Should the City receive any one-time, lump sum loan payoffs, the funds available to be allocated to FY 2020-21 Public Services may be increased.
Existing Obligations
With the exception of Eden I & R, the public service sub-recipients are in the second year of two year agreements. Eden I &R is entering the last year of its three-year agreement. The terms of its agreement specify that its compensation be adjusted annually tied to the Consumer Price Index (CPI). Consequently, staff’s recommendations include a 1% CPI increase to $24,725 to fund the third year of a three-year funding agreement for Eden’s Information and Referral Program.
Proposed Public Services Funding for FY 2020-21
Below is a summary of the currently funded CDBG Public Services agreements, the FY 2020-21 funding amount, and staff’s recommendation for FY 2021-22 funding levels.
|
CDBG Public Service Providers |
FY 2020-21 Funding |
Staff’s Recommended FY 2021-22 Funding |
|
Alameda Family Services |
$ 50,000 |
$ 40,118 |
|
Alameda Food Bank |
$ 27,638 |
$ 22,175 |
|
Building Futures with Women and Children |
$ 82,899 |
$ 66,514 |
|
Eden I & R |
$ 24,480 |
$ 24,725 |
|
Family Violence Law Center (FVLC) |
$ 21,313 |
$ 17,100 |
|
Legal Assistance for Seniors |
$ 21,313 |
$ 17,100 |
|
TOTAL |
$ 227,643 |
$187,732 |
Lastly, staff would like to note that in FY 2020-21, Fair Housing services were funded with CDBG administrative dollars. For FY 2021-22, at the May 4, 2021 City Council meeting, staff will once again propose the use of CDBG administrative dollars (instead of public services) and that the funding level remain unchanged at $20,000.
RECOMMENDATION
Staff recommends the CDBG Public Services funding levels shown in the table in the previous section.
In the event that unanticipated, lump sum CDBG loan payoffs are received prior to the end of the fiscal year, staff recommends allocating the additional program income funds proportionately across the service providers whose funding levels have been decreased from the previous fiscal year (e.g., recommended FY 2021-22 funding level is lower than that of FY 2020-21).
Respectfully submitted,
Lisa Maxwell, Interim Community Development Director
By,
Lisa Fitts, Community Development Program Manager
Exhibit:
1. CDBG Power Point Presentation, April 22, 2021