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CC Resolution No. 17-057 Adopting 2017-18 CDBG General Fund Human Service Grants and Below Market Rate Affordable Housing Fund Allocations RESOLUTION NO. 17-057 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING THE 2017-18 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM, GENERAL FUND HUMAN SERVICE GRANTS (HSG) PROGRAM AND BELOW MARKET- RATE (BMR) AFFORDABLE HOUSING FUND (AHF) FUNDING ALLOCATIONS WHEREAS, the Housing and Community Development Act of 1974 provides that funds be made available for the Community Development Block Grant (CDBG) program; and WHEREAS, the City of Cupertino wishes to apply for funds as an Entitlement Jurisdiction under said Act; and WHEREAS, the City of Cupertino estimates receiving a $307,952 CDBG entitlement grant from the United States Department of Housing and Urban Development (HUD) to be allocated for fiscal year (FY) 2017-18; and WHEREAS, the City of Cupertino estimates allocating $7,944 in CDBG program income for FY 2017-18; and WHEREAS, The City of Cupertino estimates allocating up to $8,161 of available uncommitted CDBG funds from prior fiscal year 2016-17 for FY 2017-18; and WHEREAS, the City of Cupertino is required to submit a FY 2017-18 CDBG Annual Action Plan to HUD for review and approval prior to being allowed to expend CDBG funds for FY 2017-18; and WHEREAS, the City of Cupertino put into place a CDBG Contingency Plan (Exhibit 1) because of the uncertainty in the federal budget and the revised timeline provided by HUD to submit the Action Plan; and WHEREAS, the City Council held a public hearing on May 16, 2017 and approved the selection of Hello Housing as the FY 2017-18 BMR Program Administrator; BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby approves the Housing Commission's FY 2017-18 funding recommendation allocations to the organizations and dollar amounts (Exhibit 2); and BE IT FURTHER RESOLVED that the 2017-18 CDBG, HSG and BMR AHF grant funding allocations will be decreased/increased based on final budget allocations by HUD and City Council; and Resolution No. 17-057 Page 2 BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby authorizes the City Manager to negotiate and execute the grant agreements in substantially the forms as Attachments E, F, G, H and I to the City Council staff report dated June 20, 2017 entitled "2017-18 Grant Funding Allocations". PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 201h day of June, 2017 by the following vote: Vote Members of the City Council AYES: Vaidhyanathan, Chang, Scharf, Sinks NOES: None ABSENT: Paul ABSTAIN: None ATTEST: APPROVED: Grace Schmidt, City Clerk Savita Vaidhyanath n, Mayor, City of Cupertino 2 Resolution No. 17-057 Page 3 Exhibit 1 CDBG Contingency Plan In the case of funding increase, the following plan is recommended: Public Services ($47,331): Distribute the additional available amount in the public services cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount. 0 Administration ($63,107): Funds are to be allocated to the City of Cupertino for CDBG administration. General Fund allocation will be reduced accordingly. 0 Capital/Housing Projects ($213,259): Distribute the additional available amount in the capital/housing projects cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount. In the case of a funding decrease, the following plan is recommended: Public Services ($47,331): Distribute any funding decrease proportionately among the remaining public service applicants, but maintain a minimum funding allocation of $15,000 for any applicant to the extent feasible. 6 Administration ($63,107): Any decrease in funding will be supplemented by the General Fund for CDBG administration. Capital/Housing Projects ($213,259): Any decrease in funding will be supplemented by the Below Market Rate (BMR) Affordable Housing Fund (AHF) for CDBG capital/housing projects. 3 Resolution No.17-057 Page 4 Exhibit 2 2017-18 CDBG, HSG and BMR AHF Grant Funding Allocations FY 2017/18 Housing Est.FY FY 2017/18 Commission Fiscal Year 2017/18 2017/18 Funding No. Grant Application Summary Funds Funding Recommendations Available Requests as of May 11,2017 Meeting 1 CDBG Public Service Applications: (Two-Year Funding Cycle,FY 2016/17&17/18) a Live Oak Adult Day Services-Senior Adult Day Care $ 15,169.00 $ 15,169.00 b West Valley Community Services-Community Access to $ 32,162.00 $ 32,162.00 Resource and Education(CARE) Sub-Total $ 47,331.00 $ 47,331.00 $ 47,331.00 2 CDBG Capital/Housing Project Applications: (One-Year Funding Cycle,FY 2017/18) a Rebuilding Together Silicon Valley- Housing Repair and $ 64,000.00 $ 64,000.00 Rehabilitation Project b West Valley Community Services-Vista Village Renovation $300,000.00 $ 149,259.00 Project Sub-Total $213,259.00 $364,000.00 $ 213,259.00 3 CDBG Program Administration: (One-Year Funding Cycle,FY 2017/18) a Administration $ 63,107.00 $ 63,107.00 Sub-Total $ 63,107.00 $ 63,107.00 $ 63,107.00 4 General Fund Human Service Grants (HSG)Applications: (Two-Year Funding Cycle,FY 2016/17&17/18) a Catholic Charities of Santa Clara County-Long-Term Care $ 6,500.00 $ 6,500.00 Ombudsman b Maitri-MTH Direct Client Services $ 23,400.00 $ 23,400.00 c Senior Adults Legal Assistance-Legal Assistance to Elders $ 10,100.00 $ 10,100.00 Sub-Total $ 40,000.00 $ 40,000.00 $ 40,000.00 5 Below Market-Rate(SMR)Affordable Housing Fund(AHF) Applications (Two-Year Funding Cycle,FY 2016/17&17/18): Eden Council for Hope and Opportunity(ECHO)-Fair a $ 10,000.00 $ 10,000.00 Housing Services b Hello Housing-BMR Program Administration $175,000.00 $ 175,000.00 c Project Sentinel-Landlord/Tenant Rental Mediation $ 35,000.00 $ 35,000.00 West Valley Community Services-10311 &10321 Greenwood d $160,000.00 $ 160,000.00 Court Renovation Project Sub-Total $370,000.00 $ 370,000.00 TOTAL $363,697.00 $884,438.00 $ 733,697.00 4