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UPDATE ON POTENTIAL CHANGE TO FEDERAL COMMUNITY DEVELOPMENT LOCK GRANT (CDBG) FUNDS FOR FY17-18 AND IMPACT ON PUBLIC SERVICES -- CLAUDIA YOUNG, DIRECTOR OF RENT & COMMUNITY PROGRAMS, HOUSING AUTHORITY OF THE CITY OF ALAMEDA
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On May 2, 2017, City Council will hold a public hearing to consider staff recommendations for the Community Development Block Grant (CDBG)/Home Investment Partnership (HOME) Annual Action Plan for the FY17-18 Program Year. The federal budget for FY16-17 is the source of funds for CDBG/HOME programs during the City fiscal year FY17-18. However, Congress has not yet approved a budget for the current fiscal year (FY16-17).
HUD issued written guidance to all entitlement jurisdictions regarding the preparation of Action Plans for the coming year. The guidance states that jurisdictions may follow the ordinary public hearing process and assume level funding from the prior year, but the approval Resolution must include language that acknowledges a potential budget decrease in CDBG/HOME funding and a statement of how a lower amount will be budgeted.
Therefore, staff is recommending that all activities funded through CDBG/HOME will be proportionally increased or decreased from the estimated funding levels to match the actual CDBG/HOME grant amounts once appropriated by Congress. This is in line with SSHRB's funding recommendation letter for the two year funding cycle (FY16-17 and FY17-18). Attached is a copy of the recommended funding with an example of a 15% reduction. (ATTACHMENT A)
In the unlikely event that the federal budget has not been adopted by the start of the City fiscal year (July 1, 2017), no CDBG funds would be available until a budget is adopted. Staff is recommending that sub-recipients plan for the possibility of not having CDBG/HOME funds available at the start of the July 1, 2017 program year and put a contingency plan in place. This means that if the City does not receive its HUD funding allocation by July 1, 2017...
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