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#5 - Presentations regarding CDBG and HOME fun NEIGHBORHOOD SERVICES MEMORANDUM August 9, 2010 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Agenda Item #5 - Presentations by Applicants of their Proposals for funding under the 2011 Community Development Block Grant Program and HOME Programs. In planning for the use of the 2011 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs, the Community Development Authority (CDA) has requested proposals from non-profit agencies. Representatives from agencies who have submitted a proposal have been invited to make a brief presentation (no more than 10 minutes) to the CDA at the August 18, 2010 meeting. A total of eleven (11) applications for funding from the CDBG Program and HOME Programs were received. In addition, City staff is requesting funding to support a summer camp scholarship program. Eight (8) of the requests are for public service activities and fall under the 15% cap for expenditures. Two (2) of the requests are for housing activities and two (2) are for other eligible activities. These activities should be evaluated against the housing and homeownership programs administered through the Neighborhood Service’s Department. Planning for the use of CDBG funds for public service activities is difficult. Under CDBG rules, the City has a limit on the amount of funds that may be used for public service activities. Only 15% of the current year’s grant plus 15% of the prior year’s program income may be used to fund public service activities. The amount of the 2011 CDBG grant is not yet known. Currently staff estimates that $105,000 will be allowed to be used for public service activities. This is based on a CDBG grant estimate of $585,000 for 2011, the same as received in 2009, and $117,000 in program income to be received in 2010. This estimate may be revised as we progress through the budget process and additional income information becomes available. The CDA may allocate less than $105,000 for public service activities, but not more than that amount. Each agency proposal is included in the agenda packet. In addition to the application, Neighborhood Services has copies of agency audits, financial statements, and articles of incorporation. Please let me know if you would like copies of these items or feel free to stop in the office to review them. In addition, I have included a summary of the requests for funding and a history of prior funding. 12 Page of Finally, I have included an evaluation sheet. The CDA has not defined specific evaluation criteria. The items I included on the sheet are meant as a suggestion of items/areas the CDA may wish to consider in evaluating proposals. The Authority is requested to read each of the applications and consider information provided at the Agency Presentations. The August 18, 2010 meeting will allow Authority members the opportunity to ask questions about the proposed activity. A special meeting will be held on September 1, 2010 for the CDA to make preliminary public service allocation and outside funding recommendations. A public hearing will be held on the budget on September 15 and the Authority will make a recommendation on the use of the CDBG and HOME funds for Council consideration during the budget process. The City Council will make the final decision on the use of CDBG and HOME funds during their budget approval process. ACTION REQUESTED No action is necessary at this time, however, the CDA may wish to discuss the format or process you would like to use to facilitate your allocation decision. In the past, members have indicated their individual preference regarding allocations, and then the CDA has discussed the projects and made a funding decision. I would be happy to compile a spreadsheet with individual preferences prior to the September 1, 2010 meeting if that would be helpful to the CDA. 22 Page of