SUBJECT
Title
Funding Recommendation for FY 2019/20 Supplemental Community Development Block Grant (CDBG) Funding for Capital and Affordable Housing Projects.
Report
BACKGROUND
The City of Sunnyvale receives annual entitlement grants of CDBG and HOME funds from the U.S. Department of Housing and Urban Development (HUD), as well as "program income" from loan repayments. Each year the City solicits proposals from local organizations to use a portion of these funds to provide eligible housing and community development services or projects to the Sunnyvale community. The Requests for Proposals (RFP) set forth the types of public services (human services) programs, capital and housing projects that are eligible for CDBG or HOME funding.
The City is expected to receive approximately $930,000 in CDBG program income during FY 2019/20. Once the City collects program income, it must be spent during the program year in which it is received. Due to the influx of unanticipated program income, the City released a supplemental CDBG RFP for $900,000 on September 27, 2019, specifically requesting proposals focused on capital and affordable housing projects due to the sort timeframe to spend the funding.
CDBG capital project proposals may include housing rehabilitation, economic development activities, public facilities and infrastructure improvements, site acquisition, commercial building rehabilitation, and several other types of projects listed in the CDBG statutes. Any of the project types must show clear evidence that they will "primarily benefit" low income residents. This means at least 51% of the clients utilizing a public facility to be improved or acquired must be lower-income.
DISCUSSION
The City received one proposal from Sunnyvale Community Services requesting $900,000 for acquisition of a public facility, more information on the proposal is provided in Attachment 3. The staff evaluation committee, consisting of several Community Development Department staff...
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