03-15-2011 - Authorization to Draft FY 2011-2012 Community Deve - Item 8 (2).doc
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Michele L. McNeill
Community Services Director
SUBJECT: AUTHORIZATION TO DRAFT FY 2011-2012 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLAN
RECOMMENDATION:
It is recommended that the City Council direct staff to develop a draft FY 2011-2012 CDBG Action Plan, based on the needs and priorities identified in the approved FY 2010-2015 Consolidated
Plan.
DISCUSSION:
The City receives an annual grant of CDBG funds from the U.S. Department of Housing and Urban Development (HUD). CDBG is a federal program with an overall objective of developing viable
urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities principally for low and moderate-income persons.
As a condition of receiving the funds, HUD requires the City to prepare an annual Action Plan, which details the activities the City plans to undertake with the funds in the respective
year. HUD also requires a public hearing prior to the development of an Action Plan to ensure that the public has an opportunity to provide input.
This is the first of two public hearings required by the Action Plan development process. Because it occurs prior to the publication of the draft Action Plan, it is referred to as the
Pre-Development hearing. The purpose of this hearing is to provide an opportunity for citizen input relative to the identification and prioritization of community needs that may be
addressed with CDBG funds in FY 2011-2012.
The City’s FY 2010-2015 CDBG Consolidated Plan, a strategic and visioning document, which guides the use of CDBG funds over the 5-year period, was approved by the City Council on April
20, 2010. HUD requires grantees to consider and prioritize nine categories of need as a basis for the document. Below, Table #1 summarizes the results of a public consultation process,
past CDBG funding allocations, an assumption that City will continue to fund public services at the 15% cap, and input from City Departments (Public Works, Community Services, Police
and Community Development Commission). Staff is recommending a continuance of these needs and priorities.
Table #1
City of West Covina
FY 2010-2015 Consolidated Plan Priorities
Attachment #1 describes these categories.
Andrew G. Pasmant, City Manager
and City Council
Page 2 – March 15, 2011
To facilitate prioritization of the categories and evaluation of proposed activities, HUD established four relative levels of priority: High, Medium, Low, and No Such Need. A High Priority
means that activities in that category will be funded by CDBG funds. A Medium Priority means activities in that category may be funded by CDBG funds. A Low Priority means CDBG funds
will not be used to fund activities in a particular category.
Recent annual grants have been approximately $1.1 million. HUD has yet to announce grant amounts for FY 2011-2012. Staff anticipates a delayed notification as the federal government
works toward a budget. During this process, cuts to the program have been discussed. Given this uncertainty, the staff recommendation represents a continuance of the City’s previously
adopted community development priorities.
Staff plans to have the draft FY 2011-2012 CDBG Action Plan available for a HUD-required 30-day public review starting in late March. Following the review, the draft will be presented
to City Council for consideration in a public hearing on May 3, 2011. An approved Action Plan is due to HUD by May 15.
ALTERNATIVES:
Direct staff to develop a draft FY 2011-2012 CDBG Action Plan, which continues the needs and priorities identified in the approved FY 2010-2015 Consolidated Plan.
Provide alternate direction.
FISCAL IMPACT:
None.
Prepared by: Kelly McDonald Reviewed/Approved by: Michele McNeill
Management Analyst II Community Services Director
Attachment #1: Descriptions of Categories of Need in Table #1