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101-Staff Report.pdf COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 1010300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: May 3, 2011 Subject Community Development Block Grant (CDBG) funds, Human Service grants, and FY 2011 Annual Action Plan Recommended Action Conduct public hearing; and 1. Adopt Resolution No. 11-____approvingthe allocations for the use of the 2011-2012 CDBG program and human service grant as detailed in Attachment B; and 2. Approve the FY 2011-12 Annual Action Plan (Attachment C) as required by the federal Department of Housing and Urban Development (HUD). Description This is the second of two required public hearings regarding use of 2011-12 CDBG funds, HumanService grants and FY 2011 Annual Action Plan Background The City of Cupertino is expecting to receive a CDBG entitlement of approximately $353,012 for fiscal year 2011-12, plus a reallocation of $10,300 in projected program income from rehabilitation loan payoffs for a total of $363,312. The allocation represents an approximate decrease of 16%from last fiscal year’s entitlement.On April 5,2011,the City Council held the first public hearing for both the allocation of CDBG funds and the Annual Plan. The Annual Plan has been in distribution since March 11,2011and no comments have been received. It isthereforerecommended that the City Council adopt both the Annual Plan and the allocations as recommended by the Housing Commission Below are summariesof the Housing Commissionactions and basic information regarding the content and purpose of the Annual Actual Plan. Cupertino Housing Commission: On May 18, 2010, the City Council approved a revised Citizen Participation Plan as part of its 2010-2015Consolidated Plan. Prior to expending CDBG dollars, the City is required to have a Citizen Participation Plan, Consolidated Plan and an Annual Plan in place. As part of the revised Citizen Participation Plan, the City declared that the Cupertino Housing Commission would serve as the advisory body on CDBG matters. The Housing Commission’s responsibility is to make recommendations on policy, evaluate proposals received and make funding recommendations to the City Council. May 3, 2011Page 2of 2 Community Development Block Grant (CDBG) funds, Human Service grants, and FY 2011 Annual Action Plan On March 10, 2011, the Housing Commission met and conducted a public hearing on the FY 2011-12 CDBG and Human Service funding allocations. The recommendations from the Housing Commission are shown in Attachment B, Summary of Funding Allocations. FY 2010-11Annual Action Plan: Federal regulations require that each entitlement jurisdiction prepare an Annual Action Plan th and submit the plan no later than May 15of each year. The Annual Action Plan is a one- year plan which describes the eligible programs, projects and activities to be undertaken with funds expected during the program year (Fiscal Year 2011-2012) and theirrelationship to the priority housing, homeless and community development needs outlined in the approved Consolidated Plan. Furthermore, Federal regulations require the plan be made available for 30 days for public review and comment. The FY 2011-2012 Annual Action Plan (Attachment C) was released for public review on March 11, 2011 for the 30-day review period. A notice was placed in the local paper informing the public of its availability. TheMay 3, 2011 meeting is thefinal public hearing to approve the Annual Action Plan, with funding recommendations,for submittal to HUD. Fiscal Impact The City of Cupertino is expecting to receive $353,012for fiscal year 2011-12, plus a reallocation of $10,300 in projected program income from rehabilitation loan payoffs for a total of $363,312.Since HUDhas not releasedthe 2011 allocations yet, any decrease in the City’s entitlement will be reflected in a proportional decrease to all public service agencies. Rebuilding Together Silicon Valley and Senior Housing Solutions will not be affected by a decrease since they qualify for Affordable Housing Funds which will be used to make up any decrease in CDBG funding. _____________________________________ Prepared by: Vera Gil, Senior Planner Reviewed by: Aarti Shrivastava, Director of Community Development Approved for Submission by: David W. Knapp, City Manager Attachments: Attachment A: Resolution No. 11- AttachmentB: Summary of Funding Allocations AttachmentC: Fiscal Year 2010-11Annual Action Plan