To: Board of Supervisors
From: Executive Office
Meeting Date: December 5, 2023
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Department Contact: |
Kelly Hansen |
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707-463-4441 |
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Department Contact: |
Xuyen Mallela |
Phone: |
707-463-4441 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 15 Minutes |
Agenda Title:
title
Discussion and Possible Action Including Direction to Staff Regarding the Possible Assignment of Community Development Block Grant (CDBG) Program Income (PI) Funds for FY 2023-2024 and Development of Eligible Projects for the 2024 Notice of Funding Availability (NOFA); and Adoption of Resolution Authorizing the Submittal of an Amendment to Mendocino County’s Current Community Development Block Grant (CDBG) Program Income Standard Agreement with Housing and Community Development (HCD) in the Amount of $263,278.05
(Sponsor: Executive Office)
End
Recommended Action/Motion:
recommendation
Discuss the assignment of CDBG Program Income funds for FY 2023-2024 and development of eligible projects for the 2024 Notice of Funding Availability (NOFA) based on the presentation by staff and provide direction to staff; adopt Resolution authorizing the submittal of an amendment to Mendocino County’s current Community Development Block Grant (CDBG) Program Income Standard Agreement with Housing and Community Development (HCD) in the amount of $263,278.05; authorize the Chief Executive Officer or designee to sign and execute the amendment and other documents related to the grant; and authorize Chair to sign the same.
End
Previous Board/Board Committee Actions:
On May 19, 2020, the Board of Supervisors held a public hearing and adopted Resolution No. 20-065, to allocate Program Income (PI) for the establishment of a Business Revolving Loan Fund to expend on hand PI, in the amount of $200,000, collected from CBDG projects. On December 8, 2020, the Board of Supervisors adopted a revised resolution, Resolution 20-165, per the request of HCD authorizing the CEO to submit an application to utilize the on-hand CDBG PI for establishing and funding a Business Assistance Revolving Loan Fund (RLF) in the amount of $500,000.
Summary of Request:
The Board of Supervisors has the authority to allocate program income to multiple projects and determine the projects to be pursued in the 2024 NOFA, with each project potentially becoming a separate grant application to HCD for the approval of fund usage. Staff requests guidance from the Board on the projects or eligible activities they wish to see the Program Income funds utilized for and which projects they want to see applications developed for the 2024 NOFA in January.
Mendocino County receives PI repayments from first-time homebuyer programs and business loans. It also incurs ongoing expenses to service these loans. Recent program changes have changed how Mendocino County reports and can claim ongoing loan servicing expenses for its PI programs. HUD and HCD require a grantee to have an active business loan program for a grantee to bill for expenses related to loan servicing, such as the loan servicing itself and staff time. The County currently has an open agreement with HCD for a business assistance loan program, which is set to expire in June of 2024. With the changes in the rules surrounding the use of PI, the open agreement requires a contract amendment so the County can be compensated for incurred loan servicing expenses of past and current loans and $50,000 for one of the three loans approved under the open agreement. At this time, it is recommended that the County move forward with an amendment to the current agreement of $263,278.05 to cover incurred expenses and current fiscal year anticipated expenses.
With specific feedback from the Board and the community, the department can solicit additional proposals consistent with Board direction, which can then be brought back to the Board in January for final direction and approval on which projects are included in the required Resolutions that will be submitted with applications to HCD for the 2024 NOFA. See the attached memo for further details.
Alternative Action/Motion:
Provide alternate direction to staff.
Does This Item Support the General Plan? Yes
Strategic Plan Priority Designation: A Thriving Economy
Supervisorial District: All
vote requirement: Majority
Supplemental Information Available Online At: N/a
Fiscal Details:
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source of funding: CDBG Grant |
budgeted in current f/y: N/A |
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current f/y cost: N/A |
if no, please describe: |
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annual recurring cost: N/A |
revenue agreement: N/A |
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budget clarification: N/A |
Agreement/Resolution/Ordinance Approved by County Counsel: Yes
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CEO Liaison: Executive Office |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved with Direction |
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Date: December 5, 2023 |
Executed Item Type: Resolution Number: 23-191 |
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