REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: FY 2019/2020 Draft Annual Action Plan for the use of Federal Housing and Urban Development Grant Funds
Report
BACKGROUND
The City of Santa Clara receives annual funding from the United States Department of Housing and Urban Development (HUD) in the form of Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds. CDBG funds are used to provide public services to Santa Clara's low-income residents and funding for capital improvement projects. HOME funds are used for the development of affordable housing options.
As an entitlement agency, the City is required to develop a Five-Year Consolidated Plan (ConPlan) that identifies goals and needs within the community that could be addressed through the use of HUD funding. The City is also required each year to prepare an Annual Action Plan (AAP) to document how the City will use HUD funding consistent with the goals and needs identified in the ConPlan. Both documents must be reviewed and approved by HUD in order for the City to receive annual HUD fund allocations.
HUD requires that the public be provided two opportunities to offer input on the development of the AAP; once during the development of the draft AAP, and once prior to submission of the final version of the AAP to HUD for review. This hearing satisfies the first public hearing requirement. The final version of the AAP will be presented to City Council for consideration on May 7, 2019 so that it can be submitted to HUD prior to the May 15 deadline.
DISCUSSION
Because HUD has not yet announced allocation amounts for the 2019/2020 program year, the Draft Annual Action Plan uses an estimated allocation conservatively based on a 5 percent reduction from last year's allocation. HUD typically will announce actual allocations before May 7, 2019 so that the Annual Action Plan can be updated before the final version is presented to the City Council.
Based on the estimated allo...
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