HUD provides annual allocations of CDBG, HOME and ESG funds to the County on behalf of itself, the 16 small cities and South San Francisco, an entitlement city that joined with the Urban County for purposes of the HOME Program. The other three "entitlement" cities: San Mateo, Daly City and Redwood City, each receive their own allocations of CDBG and HOME. Federal regulations require a public participation process regarding the funds distribution.
Each fall, the Housing & Community Development Committee (HCDC), a citizens-advisory body appointed by the Board, meets to determine funding priorities for the three federal funding programs. From December through January, the County solicits applications from local non-profit, City and County agencies. In March, the proposals are reviewed via a public process presided by the HCDC. A draft Action Plan, enumerating CDBG, HOME and ESG funding recommendations, is submitted for Board consideration and approval. The approved final Action Plan must then be forwarded to HUD by May 15, in order to meet the July 1, timeline for the new fiscal year funding.
To reduce paperwork and to facilitate the application process for applicants, Office of Housing staff has combined the CDBG, HOME and ESG applications into one. This has also allowed staff more latitude on funding decisions for those projects eligible for multiple funding sources. |
The County will experience a funding decrease under all three funding programs for a combined total of $498,500. CDBG is reduced by $98,000, from $3,655,000 to $3,557,000. Most of these decreases are the result of demographic shifts reflected in the 2000 census data. HOME funds are decreased by $397,500, from $2,250,000 to $1,852,500. Most of this decrease is the result of Daly City dropping out of the HOME Consortium to access their funds directly from HUD; this decrease is actually over $100,000 less than originally projected by HUD. The ESG funds are reduced by $3,000, from $128,000 to $125,000. The new funding grants are augmented by program income (loan repayments) and reprogrammed funds from prior years. For the upcoming fiscal year this means almost $3.4 million additional funds. Therefore, the total program planning budget for FY 2003-04 is $8,915,212 broken down as follows: · CDBG - $6,330,517 · HOME - $2,459,695 · ESG - $125,000 These funds were broken down into five funding areas: 1. Housing Development and Housing Rehabilitation Programs($4,449,396); 2. Public Facilities and Micro-Enterprise/Economic Development ($734,516); 3. Public Service/Shelter Operations and HUD Mandates ($722,300); 4. Program Administration of the statutory limit for each program ($1,312,720); and 5. Self-sustaining Programs funded with program generated income ($1,696,280). Public Hearings
Between March 13 and March 27, 2003, the HCDC chaired a series of public meetings to consider applications for funding. All applicants were given the opportunity to present their proposals. Through this process and a review of the Office of Housing Staff recommendations, the HCDC formulated the funding recommendations presented as the subject of this public hearing. At the close of the public hearing on May 6, 10:00 a.m., the Board will be asked to finalize the recommendations for submission to HUD as part of the HUD required Consolidated Plan covering FY 2003-04 through FY 2007-08. The County received proposals requesting a total of $15,490,566 against funds available of $8,915,212. The attached Action Plan for CDBG/HOME/ESG Funding for FY 2003-04 enumerates the requests and HCDC recommendations. Also included in the funding recommendations are two pre-commitments from FY 2004-05: $35,000 of CDBG funds to support the YMCA development of the Bell Park Community Center in East Palo Alto; and $15,000 for the third and final year of the Durable CDC Capacity Program for EPA CAN DO from HOME funds. In order to receive CDBG, ESG and HOME funds, the County must submit certifications to HUD assuring that the County (1) will not discriminate in providing services; (2) is following a detailed citizens participation process delineating a public input plan; (3) is providing a drug-free workplace for staff; and (4) has adopted and is enforcing a policy prohibiting the excessive use of force against any individuals engaged in non-violent civil rights demonstrations. In approving the Action Plan, the Board is therefore asked to approve the aforementioned certifications. |
The CDBG/ESG/HOME Action Plan keeps three commitments: (1) Realize the potential of our diverse population, goal number 2; Civic engagement including voting, public service charitable giving, volunteerism, and participation in public discussions of important issues; (2) Offer a full range of housing choices, and goal number 9: Housing exists for people at all income levels for all generations of families; and (3) Responsive, effective and collaborative government, and goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. The Action Plan contributes to these commitments and goals by its public participation activities, which invoke a civic engagement process based on careful consideration of future impact, including the assurance of affordable housing opportunities for families and various special needs populations. |
