City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Toni Lundgren, City Manager |
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Prepared by: |
Vielka Guarascio, Management Analyst |
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Date: |
March 5, 2024 |
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Subject: |
Allocation of 2024-25 CDBG and HOME Funds |
Recommendation:
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Adopt a resolution allocating 2024-25 Community Development Block Grant (CDBG) funds in the approximate amount of $408,428 and 2024-25 Home Investment Partnership Act (HOME) funds in the approximate amount of $146,529 to the Manteca Navigation Center/Affordable Housing project.
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Background:
Each year, the City receives Federal CDBG and HOME funds, which are provided through the U.S. Department of Housing and Urban Development (HUD). These funds can only be used for specific purposes - primarily for the benefit of low- to moderate-income residents.
The City is expected to receive approximately $408,428 in new Federal CDBG funds for Fiscal Year 2024-25, and $146,529 in HOME funds.
Before CDBG funds can be allocated, the City Council must conduct a public hearing to consider requests for these funds. Staff solicited applications for these funds, and several have been received from private organizations and public projects.
Eligibility Criteria:
In order to be eligible for CDBG funds, projects much satisfy one of the three national objectives mandated by Congress. These objectives are:
1. To address the needs of low- to moderate-income persons.
2. To eliminate a slum or blighted condition.
3. To resolve an urgent need.
CDBG Funds:
In December 2023, the City published a legal advertisement promoting the availability of CDBG and HOME funds. Attachment 2 is a list of requests submitted by a number of public service agencies, as well as City-related projects, totaling $934,918.46.
Staff recommends approving the following project allocations in the amount of $408,428:
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Agency |
Allocation Recommendation |
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Emergency Food Bank - Mobile Farmer’s Market |
$3,000.00 |
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Give Every Child a Chance |
$12,000.00 |
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H.O.P.E. Family Shelters |
$8,619.60 |
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Human Services Agency of SJ County - Meals on Wheels Program |
$6,000.00 |
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PREVAIL (Formerly Women’s Center - Youth & Family Services) |
$8,619.60 |
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San Joaquin County Fair Housing |
$9,025.00 |
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Wide Horizons, Inc. |
$14,000.00 |
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Manteca Navigation Center/Affordable Housing |
$150,000.00 |
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H.O.P.E. - Additional Emergency Shelter Units |
$197,163.80 |
Staff also proposes CDBG funds be allocated to continue to contract with San Joaquin Fair Housing annually to provide fair housing-related services. If the City chooses not to contract with the Fair Housing Board, new staff would be needed to provide these duties, as long as we accept CDBG funds. Most of the cities in San Joaquin County who are CDBG entitlement communities participate in this annual contract with San Joaquin Fair Housing.
Funding Limitations:
HUD guidelines limit the amount of funds that can be used for various projects. The City cannot allocate more than 14 percent of its allocation for administrative expenses (maximum allowable for 2024-25 is approximately $57,179.92), and no more than 15 percent for public service agency projects (maximum allowable for 2024-25 is approximately $61,264.20). Other projects, which are considered capital improvement projects that result in a direct benefit to the public property and benefit low-income residents and/or senior citizens, are not subject to these limits.
Project Requests:
Attachment 2 includes a list of Public and City-initiated and other public facility projects. Copies of the applications, proposed budgets, detailed copies of all the proposals, including their independent audits, letters of support and other supplemental materials are available for review in the City Manager’s Office.
HOME Funds:
The City also receives HOME Funds, which can only be used to benefit affordable housing in the areas of Acquisition, conversion, new construction, moderate rehabilitation, substantial rehabilitation, demolition, site improvement, financing, relocation, and tenant-based assistance. To date, the City has used HOME funds to help the following programs and projects:
• Assist low- to moderate-income first-time homebuyers in purchasing homes within Cedar Glen subdivision and through the City’s larger-scale Down Payment Assistance Program
• Cottage Village Apartments
• Eden Housing North Union Road senior housing project
• Eden Housing Union Court rehabilitation project
• Eden Housing Manteca Senior Housing 2 Project - the second phase of the Almond Terrace project on North Union
• Residential Rehabilitation
Based on City priorities, staff recommends using available HOME funds in the amount of $146,529 for the Manteca Navigation Center/Affordable Housing project.
Summary:
Prior to making any commitments on the allocation of CDBG and HOME funds, the Council is required to hold a public hearing to consider suggestions on how these funds should be allocated. Until Congress adopts a Federal budget, the specific funding level remains uncertain. These funds would not be available until after July 1, 2024.
Fiscal Impact:
These projects are funded entirely by Federal CDBG and HOME funds. Staff costs to administer the programs are offset by funding from these programs.
There is no impact to the General Fund.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - CDBG Project Requests