TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: JUNE 11, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM - BUDGET AMENDMENT FOR 2024-25 (FUNDING SOURCE: COMMUNITY DEVELOPMENT BLOCK GRANT FUND)
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SUMMARY
The Community Development Block Grant (CDBG) Program is a Federal program that provides funding to cities and counties to carry out programs and projects designed to benefit low- and moderate-income people. At its February 13, 2024 meeting, the City Council approved the 2024-25 Community Development Block Grant (CDBG) budget. The City has an unallocated CDBG balance of $89,465 from rollover funds from previous years and program income from Housing Rehabilitation loan payoffs. The Los Angeles County Development Authority (LACDA) has requested that the City fully allocate this balance towards 2024-25 CDBG programs. Staff recommends a budget increase of $79,465 for the Housing Rehabilitation Program from $70,196 to $149,661 and an increase of $10,000 for the Job Creation and Business Incentive Program from $30,000 to $40,000.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Approve the 2024-25 Community Development Block Grant (CDBG) budget amendment to reallocate $79,465 to the Housing Rehabilitation Program and $10,000 to the Job Creation and Business Incentive Program; and
B. Appropriate $79,465 in CDBG unallocated balance to the Housing Rehabilitation Program and $10,000 to the Job Creation and Business Incentive Program.
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ALTERNATIVES TO RECOMMENDATION
In addition to the staff recommendation, there are the following alternatives:
• Approve the 2024-25 CDBG budget amendment with changes.
• Request additional information.
FINANCIAL REVIEW
The proposed budget amendment will increase the 2024-25 CDBG fund allocation from $117,358 to $206,823 using unallocated CDBG funds.
The staff cost to prepare this report is estimated at $500 and is included in the operating budget of the Community Development Department. Staff cost to administer the CDBG Housing Rehabilitation Program is reimbursed by the LACDA from the program funds.
ANALYSIS
The CDBG Program is a Federal Block Grant Program that began in 1974 and provides funding to cities and counties to carry out programs and projects designed to benefit low-income persons. As a member of an Urban County Agreement, Claremont receives CDBG funding from LACDA. LACDA performs many of the administrative tasks required to comply with the Federal regulations of the CDBG program.
Proposed 2024-45 CDBG Budget Amendment
Staff has continued to experience an increased interest in the City’s Housing Rehabilitation Program, which assists low- and moderate-income households to pay for much-needed maintenance, repairs, or energy efficiency improvements. Therefore, staff recommends an increase of $79,465 for the Housing Rehabilitation Program from the unallocated CDBG balance. Additionally, staff has continued to promote the Job Creation and Business Incentive Program but has not received any applications this year. Staff recommends an increase of $10,000 to further entice businesses to participate in the program.
When the 2024-25 CDBG Budget was approved, LACDA had not yet released the final budget allocation. At the time, LACDA estimated the City’s allocation to be $117,878; the final allocation was slightly lower at $117,358. This amendment will adjust the budget with the final 2024-25 allocation amount.
|
Project/Program |
Approved Budget |
Proposed Amended Budget |
|
Housing Rehabilitation Program |
$ 70,196 |
$ 149,661 |
|
Senior Case Management Program |
$ 17,682 |
$ 17,682 |
|
Job Creation & Business Incentive Program |
$ 30,000 |
$ 40,000 |
|
Total |
$ 117,878 |
$ 207,343 |
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, Economic Sustainability Plan, General Plan, 2022-24 Budget, and Youth and Family Master Plan.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Alex Cousins
Community Development Director Management Analyst