For City Council Meeting August 13, 2024
TO: Honorable Mayor and City Council
FROM: G. Michael Milhiser, Interim City Manager
AUTHOR: Cynthia Alvarado, Director of Parks, Recreation & Community Services
Title
Request City Council to: 1) Review and Update the City's CDBG-CV Programs and Funding Guidelines; and; 2) Provide Staff Direction on initiating an application period for the distribution of CDBG-CV funding to community service organizations.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council 1) Review and Update the City's CDBG-CV Programs and Funding Guidelines; and; 2) Provide Staff Direction on initiating an application period for the distribution of CDBG-CV funding to community service organizations
BACKGROUND
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), which appropriates nearly $2 trillion nationwide for COVID-19 pandemic relief funding. $5 billion of these CARES Act funds, referred to in this report as CDBG-CV funds, were appropriated to the Community Development Block Grant Program (CDBG) to assist state and local governments in their COVID-19 response.
CDBG CARES Funding Background
The CDBG program is a federally funded program of HUD that provides funding for housing, community facilities, and public services. On April 2, 2020, HUD announced the allocation of the first $2 billion in CARES Act funding for current CDBG grantees. The CARES Act builds on features of the existing CDBG program as well as precedent set by CDBG Disaster Response (CDBG-DR) supplemental appropriations. The act directs HUD to administer these funds, pursuant to Section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306). This provision calls for HUD to allocate the supplemental funds to CDBG grantees -including eligible local governments, states, and insular areas - proportional to their conventional Fiscal Year 2020 CDBG allocation, as published b...
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