REPORT TO COUNCIL
SUBJECT
Title
Consider Approval of Draft Second Substantial Amendment to the 2019 Housing and Urban Development (HUD) Action Plan
Report
BACKGROUND
CDBG and HOME Programs
The Community Development Block Grant (CDBG) program was established by the Housing and Community Development Act of 1974, Public Law 93-383; and the Home Investment Partnerships (HOME) Program was established by the National Affordable Housing Act of 1990. These programs provide annual grants to jurisdictions to enable them to "develop viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for low and moderate-income persons." CDBG regulations define "low income" as households earning not more than 80% of area median household income, or what the City and the State of California refer to as "lower-income households". The CDBG and HOME lower-income limits are established annually by HUD and is currently set at $94,450 for a household of four in the Sunnyvale-San Jose metropolitan area, with adjustments for larger or smaller households. To be eligible for most types of CDBG or HOME assistance, the household's gross annual income cannot exceed that amount.
The City must submit an Action Plan to HUD every year in order to receive federal entitlement grants from the CDBG and HOME Programs. HUD is the federal agency that administers and regulates these grants and the Action Plan sets forth the proposed uses of the CDBG and HOME funds projected to be available each fiscal year. These funds may be used for eligible community development activities to meet the priority and/or unmet needs, primarily of lower-income residents, described in the City's HUD Consolidated Plan. In addition to the annual entitlement grant, the City may receive Program Income (PI) annually or an influx of funding specifically intended to respond to a public health and safety emergency.
CDBG CARES Funding
On March 27, 2020 th...
Click here for full text