MEMO TO: Members of the City Council
FROM: Mayor John Marchione
SUBJECT:
title
Approval of Proposed King County Community Development Block Grant (CDBG) 2019 Funding Allocation Plan
I. RECOMMENDED ACTION
recommendation
Approve recommendation for allocation of 2019 Community Development Block Grant funds.
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II. DEPARTMENT CONTACTS
Erika Vandenbrande, Director, Planning, and Community Development, 425-556-2457
Colleen Kelly, Assistant Director, Community Planning, 425-556-2423
Alaric Bien, Senior Planner, Human Services, 425-556-2458
III. DESCRIPTION/BACKGROUND
As part of the Interlocal agreement with King County, each year Redmond must develop a plan for allocating its Community Development Block Grant (CDBG) entitlement funds. Projects eligible to receive CDBG funds are limited due to various federal requirements. Funds may be used for public services (i.e. human services programs) and capital projects that demonstrate a direct benefit to Redmond residents and that meet the low to moderate income requirements. The proportion of funds available for each type of activity is determined by the interlocal agreement between Joint Agreement Cities and King County. Funds may be used in three categories; Capital, Public Service and Administration as described below.
Capital Funding Process and Recommendation: CDBG may support certain Public Improvement and/or Parks projects, and there are a number of constraints related to use of these funds. Support for affordable housing is an allowed use, and staff is recommending that the 2019 CDBG capital funds be allocated to A Regional Coalition for Housing (ARCH), as they have been for several years.
Public Service Funding Process and Recommendation: Programs that may be considered for public service funding are dedicated to human service activities that must also meet strict CDBG eligibility and reporting requirements. Staff reviewed applications that were received as part of the regular 2019-2020 Human Services allocation process. Only proposals for new or expanded services may be considered for CDBG funding, though continuing programs that have been supported using CDBG are eligible to continue receiving those funds. Based on these criteria, staff recommends that Redmond allocate its 2019 CDBG Public Services funds to Congregations for the Homeless to continue supporting the services and operation of a winter shelter for homeless men on the Eastside.
Planning & Administration Funding Recommendation: CDBG allows up to 20 percent of the grant for planning and administration purposes. While this may be waived and applied to capital projects, our experience has been that the amount of staff time spent on eligible activities consistently exceeds the maximum allowed. The remainder of Planning Administration has been supported by City funds. Staff is recommending the full 20 percent be allocated to planning and administration of this grant.
The full plan for which approval is needed is summarized here:
2019 Redmond CDBG Allocation Plan
|
Public Services |
|
1 |
Congregations for the Homeless-Homeless Services |
$32,450 |
|
Capital Projects |
|
1 |
ARCH |
$123,308 |
|
Planning & Administration |
|
1 |
Admin |
$32,450 |
|
Contingency Projects |
|
1 |
Since the CDBG funds are an estimate from the federal government, Redmond must also adopt a contingency plan. Accordingly, the above projects will receive proportionate increases/decreases to CDBG funding. |
|
NOTE: All dollar amounts are estimates until King County is officially notified by the Department of Housing and Urban Development (HUD).
IV. PREVIOUS DISCUSSIONS HELD
A public hearing was held on July 23, 2018, with 15-day public notice given as required by King County. There were no public comments on this proposal. The Parks and Human Services Committee was briefed on this proposed allocation at its September 4, 2018 meeting. Should these funds not materialize for any reason, the risk is technically borne by the agency, but the City would work in good faith to try to make them whole.
V. IMPACT
A. Service/Delivery:
Approval of this funding plan keeps the City in compliance with county requirements governing the pending distribution of 2019 CDBG funds to the City.
B. Fiscal Note:
None.
VI. ALTERNATIVES TO STAFF RECOMMENDATION
If the Council declines to approve the funding allocation plan, the City would be out of compliance, potentially jeopardizing the 2019 CDBG entitlement.
VII. TIME CONSTRAINTS
The City’s allocation plan must be submitted to King County by October 8, 2018, in order to be incorporated into their process for submission to the federal government.
VIII. LIST OF ATTACHMENTS
None.