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COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM - Administrative Services Director Tom Provine and Lorie Ann Adams, Adams Ashby Group
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Requested Action(s)
recommendation
a) PUBLIC HEARING - Conduct a Public Hearing to receive public input to consider the 2024 Community Development Block Grant (CDBG) Program for Tehama County
1) Review the program and available funding options and staff recommendations
2) Open Public Hearing
3) Receive Comments
4) Close Public Hearing
b) Board discussion and review of potential projects for the 2024 Community Development Block Grant Notice of Funding Availability (NOFA) and direction to staff to make application and return to the Board with the required resolution for authorization to submit as required by the CDBG NOFA
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Financial Impact:
The County will incur fees for legal noticing for this public hearing. Adams Ashby Group, Inc., the County’s Grant Administration Consultant, estimates the cost to prepare an infrastructure application to be $7,500 not including environmental or engineering costs required to complete the application. The costs associated with the preparation of applications are an eligible expenditure of CDBG General Administration funds.
Background Information:
This item is intended to provide information to the community of Tehama County for the 2024 CDBG Notice of Funding Availability (NOFA) through a Public Hearing; the application to be submitted under the 2024 CDBG NOFA for activities and potential applications for submittal will be approved at an upcoming Board meeting. Additionally, we are requesting the Board direct the County staff on the projects and programs to submit application(s) on behalf of the county after public comment and discussion is completed.
Written comments regarding the County’s CDBG Program can be addressed to the County Clerk of the Board at 633 Washinton Street, Room 11, Red Bluff, CA 96080, M-F 8:00 a.m. - 5:00 p.m, (530) 527-3287 or email to tcbos@tehama.gov <mailto:tcbos@tehama.gov> and hours in addition to comments at the meeting.
The U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program authorizes the use of funds to provide decent housing, suitable living environments, and economic opportunities to low- and moderate-income families. There are two types of CDBG programs: “entitlement” and “non-entitlement”. The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD).
The County has participated in the “non-entitlement” program. Under this program, the County can apply for available funding under a competitive application process. The HCD publishes a Notice of Funding Availability (NOFA) for each program year for eligible projects. The County has received grant awards for the following projects:
• PATH Resource Center (2018) $2,697,675
• Sky View Planning Grant (2018) $98,000
• COVID-19 Micro Business Assistance Program (2020) $267,989
• COVID -19 Path Resource Center (2020) $779,109
• Los Molinos Project (2009) $800,000
• Sky View Planning Grant (2009) $35,000
2024 CDBG Notice of Funding Availability
The 2024 CDBG NOFA is anticipated to be released in late July for approximately $44 million, with an “Over-the-Counter” (OTC) component and “Competitive” component. The application period is expected to be from late August through October 2024. HCD staff anticipates eligible jurisdictions will be able to apply for a maximum of three (3) activities with total funding not to exceed $3.6 million. The activities will be allowed in one of the following combinations:
1. One OTC Project, One OTC Program, and one Competitive Program; or
2. One OTC Project, and up to two Competitive Programs; or
3. One OTC Program, and up to two Competitive Programs
OTC applications are intended for eligible “shovel-ready” projects and programs. These are typically reviewed and awarded on a first-come, first-served basis. Staff has been working on an application for “shovel-ready” status but due to HUD’s recent release of the 2020 Census Data, our project area will now require an income survey to qualify. This will require our application to be submitted in a future round to allow for the income survey to be completed. We are anticipating this survey to being completed in September 2024.
Eligible Activities
The authorizing statute of the CDBG program requires that each activity funded (project or program), except for program administration and planning activities, meet one of three national objectives:
• Benefit to low- and moderate-income (LMI) persons;
• Aid in the prevention or elimination of slums and blight; and
• Meet a need having a particular urgency (referred to as urgent need)
Historically, the County has qualified activities under the “benefit to LMI persons” which is the most predominately used National Objective. The activity must benefit an area that is comprised of at least 51% low- or moderate-income households or benefit individually qualified households. Households qualify as low- or moderate-income households (defined as at or below 80% of the county median income). Therefore, a proposed activity that benefits either a portion or the entire County is eligible dependent on the service areas outlined in the application.
In addition to meeting one of the three National Objectives, the activity must also fall under one of the categories listed below:
Table 2: CDBG Program Categories and Maximum Award Amounts
|
Program Category |
Max Award |
Description |
|
Over-the-Counter |
|
Public Improvement Project |
$3,300,000 |
Project must be located in and serve a predominantly residential area within the county. Examples include water and sewer facilities, flood and drainage facilities, and accessibility related street improvements. |
|
Public Facility Project |
$3,300,000 |
Examples include acquisition, rehabilitation or new construction of structures used for public purposes such as recreation, training, health services, education, nutrition, shelter, day care, temporary housing and fire protection. |
|
Housing Project |
$3,300,000 |
• Multi-Family (five or more units at a specific site) Housing Rental Rehabilitation Project (with or without acquisition): provides a loan for repairs and improvements of renter-occupied units for sites where majority of the tenants qualify as LMI households. • Acquisition of Real Property for Multi-Family (five or more units at a specific site) Projects: acquisition of a site where majority of tenants qualify as LMI households. • Public Improvement Project in Support of New Housing: water and sewer facilities necessary to serve new housing developments designated for LMI households. |
|
Housing Program |
$1,500,000 |
• Homebuyer Assistance Program: provides loans for down-payment or closing costs. The amount of the CDBG-funded loan cannot exceed the amount of the primary loan. • Housing Rehabilitation Program for Single Family Dwellings: provides loans for repairs and improvements of owner-occupied units. The loan cannot cause the total encumbrances on the property to exceed the property value. |
|
Business Assistance Program |
$1,500,000 |
Provides funds for loans to business owners to finance working capital, furniture, equipment, and property repairs/improvements. CDBG regulations allow up to $35,000 of assistance per job position retained or created for a LMI workers (owner/operator or employee). The County would need to retain the services of a firm experienced in CDBG loan underwriting. There are a number of federal requirements for this program that make it quite restrictive and cumbersome for businesses to be eligible. |
|
Microenterprise Assistance |
$1,500,000 |
Provides funds for loans to LMI business owners for businesses with five or less workers (owner/operator and employees). Examples include business training, financing of working capital, furniture, equipment, and property repairs/improvements. The County would need to retain the services of a firm experienced in CDBG loan underwriting. |
|
Competitive |
|
Public Service Program |
$300,000 |
Examples include homeless services, subsistence payments, security deposits, childcare, health care, recreation programs, fair housing counseling, drug and alcohol abuse counseling and testing, homeless services, senior services, and nutrition services. |
|
Planning and Technical Assistance |
$300,000 |
The product must show a connection to assisting with an eligible CDBG activity that, if implemented, meets a National Objective. Examples of products are studies or plans, which are submitted to the State at the time of completion. This activity requires a 5 percent cash match to be expended prior to the expenditure of CDBG funds. |
Staff reviewed and discussed the information received over the previous outreach meetings and is here to recommend submitting applications for the following:
1. Sky View Water Improvement Project $3,300,000 (LMI 59.8%)