23. CDBG funding cycle
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COMMUNITY DEVELOPMENT DEPARTMENT
CUPERT.NO
CITY HALL
10300 TORRE AVENUE' CUPERTINO, CA 95014-3255
(408) 777-3308 · FAX (408) 777-3333
Summary
Agenda Item No. .23
Meeting Date: December 18. 2007
SUBJECT:
Consider implementation of a two-year funding cycle for Community Development Block Grant
(CDBG) public service grants commencing in Fiscal Year 2008-2009.
RECOMMENDATION:
Approve implementation of a two-year funding cycle for Community Development Block Grant
(CDBG) public service grants commencing)n Fiscal Year 2008-2009, and direct staff to amend
the Citizen Participation Plan so that it references the two-year cycle.
BACKGROUND:
Present Allocation Process
Currently the City of Cupertino allocates CDBG funding on an annual cycle. A Notice of
Funding Availability (NOFA) along with a funding application is issued in late December or
early January to interested parties. Applications are due in late February with the hearing process
beginning in March and ending in ApriL Staff finalizes the Annual Plan by detailing the funding
amounts and transmits the plan to the Department of Housing and Urban Development (HOD) in
mid May.
Proposed Allocation Process:
Staff is proposing a two-year funding cycle for allocating CDBG public service grants. This
process provides continuity for agencies receiving funding and cuts administrative time for both
the City and the agencies receiving the funds. Agencies applying for the public service funds
would apply and attend hearings the first year of the two-year cycle, and if awarded, enter into an
agreement for the first year allocation. The second year allocation would be contingent upon
satisfactory performance from the agency and the amount of CDBG funds the City receives from
HUD. Agencies may receive additional or reduced funding during the second year based upon
the City's entitlement grant. Funding adjustments would be made during the second year and an
amendment to the agreement would be executed. Public service agencies would not need to
attend any public hearings or complete an application for the second year funding.
A two-year funding cycle would not affect the capital improvements! housing development
allocation of the CDBG program. Agencies interested in this funding would still apply and
receive funding on an annual cycle. Furthermore, the City is still required under federal
regulations to have two public hearings a year for the CDBG program. These public hearings
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,,'
Consider implementation of a two-year funding cycle for Community Development Block Grant (CDBG) public service grants commencing in
Fiscal Year 2008-2009
December 18, 2007 Page 2 of2
would be much shorter every other year since the public service agencies would not need to make
presentations.
Cupertino is a good candidate for the proposed funding cycle adjustment because there is a
relatively consistent group of agencies that apply for and receive funding. The cycle would allow
these agencies to better plan budgets, reduce the burden of their submitting somewhat repetitive
paperwork and cut by 50% the amount of time devoted to public hearings. Neighboring
jurisdictions, such as the County of Santa Clara, Palo Alto, Mountain View, San Jose, Santa
Clara and Sunnyvale have moved to a similar two-year funding cycle. Staff from these
jurisdictions remarked that the two-year process reduces staff time with the exception of the time
spent in monitoring progress and consistency with federal regulations, which is still required in
the contract year. The nonprofit public service agencies expressed appreciation of the two-year
process due to the reduction in grant preparation time and improved budgeting abilities.
The disadvantage to the two-year cycle is that a new agency interested in seeking public service
money from the City would not be able to apply,mid-cycle and may potentially wait up to a year
and a half before being able to apply for CDBG funds. Staff does :not anticipate that this would
be a large issue since the public service applicants have remained consistent over the years.
, ".;
FISCAL IMPACT:
No fiscal impact to the General Fund is expected from the change in policy since the CDBG
program is a federal entitlement program.
D BY: Vera Oil, Senior Planner
Steve PiasecKi, Director of
Community Development
APP~R SUBMITTAL:
David W. Knapp
City Manager
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