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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Housing
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DATE:
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BOARD MEETING DATE:
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SPECIAL NOTICE/HEARING:
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VOTE REQUIRED:
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TO:
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Honorable Board of Supervisors
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FROM:
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Duane Bay, Director, Department of Housing
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SUBJECT
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Report on Public Services Funding Criteria for the Community Development Block Grant Program
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RECOMMENDATION:
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Accept this report establishing funding criteria for Public Services under the County’s Community Development Block Grant (CDBG) Program.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government.
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Goal 20: Governmental decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
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This report contributes to this goal by making transparent the process for reviewing CDBG Public Service funding requests and making funding allocations according to defined guidelines that are at the same time flexible enough to allow for unforeseen needs.
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BACKGROUND:
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On May 3, 2005, the Department of Housing presented the FY 2005-2006 Action Plan to the Board for approval prior to submission to the U.S. Department of Housing and Urban Development (HUD). The Action Plan enumerates projects and programs to be funded with three federal programs: Community Development Block Grant (CDBG); HOME Investment Partnerships (HOME); and Emergency Shelter Grant (ESG).
As part of the Board’s deliberations, Staff was directed to report back in October 2005 with more specific criteria for allocating CDBG public services funding, giving special consideration to safety net services and more clarity on funding new programs before Staff issues the annual Notice of Funding Availability (NOFA).
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DISCUSSION:
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15% Public Service Cap
HUD limits expenditures under Public Services to 15% of the annual CDBG grant. Even as annual CDBG funding from HUD has been steadily dwindling in recent years, the baseline allocation can be conservatively estimated to be at least $3.2 million for the upcoming year; 15% of that amount is $480,000. Not surprisingly, the Public Service category has been traditionally the most competitive part of CDBG funding requests by nonprofits. Public Service dollars are used as grants to support program operations, whereas most of the other CDBG dollars are structured as loans to assist in real property improvements of community facilities and housing projects.
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Public Participation Process
CDBG funding is incorporated with ESG and HOME funding into a single annual request process under one NOFA. HUD requires that local jurisdictions administering these federal programs articulate a public participation process in a Citizens Participation Plan. The County’s Citizens Participation Plan calls for a 15-member advisory body, the Housing and Community Development Committee (HCDC), that presides over much of the public process. The HCDC process starts with setting annual funding priorities in the Fall and culminates in formulating funding recommendations to the Board in the Spring, as had occurred on May 3, 2005.
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Funding Criteria for CDBG Public Services
In keeping within the framework of the County’s Citizen Participation Plan, staff drafted the initial funding criteria for CDBG Public Services and met with the HCDC on September 22, 2005 to review them. The following table captures mutually agreed upon funding criteria by staff and the HCDC. In summary, three priority categories are established for the upcoming year, with each category having minimum percentage allocations. Setting minimums ensures that funding will be allocated for priority programs and yet allows flexibility to expand funding for particular categories if the need arises.
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ESG Funding and CDBG Public Services
The issuance of a single NOFA for the three HUD programs (CDBG, ESG, and HOME) has enabled the Public Service category to be augmented somewhat. ESG funding, used exclusively for shelter operations, is folded into Public Services under the NOFA. In combining the expected ESG allocation of $120,000 to the CDBG Public Service cap, approximately $600,000 becomes available for public services, with a minimum of $408,000 for Priority I – Homeless Shelter/Transitional Shelter Operations.
Housing and HSA are currently co-designing further streamlining under which the two agencies may execute a single interagency agreement for the Public Service funding. In turn, HSA would then execute individual funding contracts with the public service nonprofits, almost all of which already receive other HSA dollars. These individual contracts would bring together HUD and HSA dollars under one funding contract. It is hoped this relationship between Housing and HSA would render seamless the contract and communication interface between the various nonprofit providers and the County.
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Under the new Housing-HSA relationship, HSA would also be responsible for providing Housing with HUD-required performance data related to the HUD funding. For any public service nonprofit not receiving HSA funding, Housing would administer the individual funding agreement if HSA feels the agreement is not within its purview.
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CDBG Public Service Priority
Public Svs Alloc.
Notes
Min.Distribution
1. Homeless Shelter/ Transitional Housing Operations
Minimum of 60% of CDBG Public Svs. allocation
Last year, this category comprised 64% of the Public Svs allocation.
$288,000
ESG
Allocated to this priority
$120,000
2. Safety Net Services (One-stop centers providing array of human services that prevent individuals from falling into poverty beyond a certain level)
Minimum of 8% of CDBG Public Svs. allocation
Last year, only 4 of the 7 Core Service agencies applied for funding. A 5th agency – in Pescadero – also rec’d funding. These 5 agencies encumbered 8% of the CDBG Public Service allocation.
$38,400
3. Services that aim at keeping people in their homes
-No Minimum
While an important priority, a minimum of -0-% is set to allow for maximum flexibility for funding 1st two priorities.
This category includes such programs as eviction defense, shared housing, fair housing enforcement, among others.
New programs that do not meet the first two priorities would have to meet this priority for funding consideration.
$ -0-
Unallocated CDBG
32% of CDBG Public Svs allocation
Available for any of the above priorities
$153,600
100% of CDBG Public Svs. Allocation plus ESG
TOTAL
$600,000
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Fiscal Impact:
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Accepting this report establishing funding criteria for Public Services under the County’s Community Development Block Grant (CDBG) Program will have no impact on Net County Cost.
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