COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

DATE:

January 22, 2004

BOARD MEETING DATE:

February 24, 2004

TO:

Honorable Board of Supervisors

FROM:

Maureen D. Borland, Director, Human Services Agency

Steve A. Cervantes, Director, Office of Housing

SUBJECT:

Report on the Mid-Year Status of Community Development Block Grant (CDBG) Funds

Recommendation

Accept a Mid-Year Status Report on the Community Development Block Grant (CDBG) funds.

Background

A public hearing is held each year by the Board of Supervisors to consider the recommendations of the Housing and Community Development Committee (HCDC) for the Proposed Action Plan for the allocation of the funds for the Community Development Block Grant (CDBG), HOME, and the Emergency Shelter Grant (ESG).

The majority of these funds are allocated to capital projects associated with affordable housing and public facilities. Fifteen percent of the CDBG funds can be used for public services that include homeless shelter operations and services related to housing. The total amount of CDBG funds available for public services for FY 2003-04 was $543,550, and ESG was $118,750, for a total of $662,300 in public service funds. Each year the public service requests for funding exceed the amount available for allocation. At the hearing held on May 5, 2003, the Board approved the allocation of funds to 17 agencies including five core service agencies. The only stipulation made was to the five Core Services Agencies, which in order to receive funds from CDBG had to agree to provide matching funds from new sources or increased funding in existing sources. During the May 5 hearing, a few agencies requested additional funds. The Board acknowledged the need but not did want to consider redistributing the funds at that time. The Board wanted to be informed of any uncommitted or unused funds that could be redistributed to other agencies. Therefore, the Board requested that the Office of Housing prepare a mid-year report on the status of the use of the CDBG Public Service funds.

Discussion

Based on the information set forth immediately below, the Office of Housing does not anticipate that any unspent public service funds will remain at the end of the contract cycle.

The Office of Housing has entered into a contract with each of the recipients of CDBG funds listed in Exhibit A. ESG Funds and CDBG Public Services Funds are monitored for both the use of the funds and the performance of the activities agreed upon. The contractors have submitted invoices on a monthly or quarterly basis, which are accompanied by a performance report. The chart on Exhibit A is based on financial records through the end of November 30, 2003, which reflects the expenditures for the first quarter of the fiscal year. Of the $662,300 total allocation, approximately one fourth of the funds ($183,692) have been expended (please see Exhibit A).

All of the contractors have provided their respective performance report indicating that they are meeting or exceeding the goals established in their agreement. The five Core Service Agencies have complied with the stipulation made in order to receive funds from CDBG and have provided documentation of their matching funds and are so indicated in Exhibit A under the column Match Funds Documented.

Fiscal Impact

There is no Net County Cost based on the information in this report.