I. RECOMMENDATION:
The City Manager recommends adopting Resolution No. 4345 declining participation in Fresno County’s Urban County Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Programs for Federal Fiscal Years 2027, 2028, and 2029.
II. BACKGROUND:
Every three years, the County of Fresno must requalify for Urban County status with the U.S. Department of Housing and Urban Development (HUD) in order to receive entitlement funding through the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs.
As part of the requalification process, each eligible city within Fresno County must determine whether it will participate in the County’s Urban County Program for the upcoming three-year cycle. Participating cities enter into a Joint Powers Agreement (JPA) with Fresno County and receive a formula-based allocation of CDBG funds, while HOME and ESG funding are administered by the County.
Of the fifteen incorporated cities within Fresno County, only a portion currently participate in the Urban County Program. Cities that do not participate remain eligible to pursue State-administered CDBG funding and other housing and community development funding opportunities independently.
III. DISCUSSION:
The City of Coalinga has elected not to participate in the Fresno County Urban County Program since 2012. This decision has allowed the City to remain eligible for State-administered CDBG funding programs and other competitive housing and community development funding opportunities that are not available to participating Urban County jurisdictions.
Under the Urban County Program, participating cities typically receive annual formula-based CDBG allocations that have historically ranged from approximately $50,000 to $250,000 per year. While these funds are guaranteed, they are generally smaller than the funding amounts available through State competitive grant programs.
By remaining outside of the Urban County Program, the City retains the ability to pursue larger competitive funding opportunities through the California Department of Housing and Community Development (HCD) and other state and federal agencies. Over the past decade, Coalinga has successfully secured significant CDBG and HOME funding awards that have substantially exceeded the annual allocations available through the Urban County Program.
Additionally, participation in the Urban County Program would limit the City's flexibility in pursuing certain housing funding opportunities. Participating cities are not eligible to apply for State Small Cities CDBG funding during the term of the agreement and must rely on the County-administered HOME program for affordable housing funding. Under the County program, HOME funding is awarded on a countywide competitive basis and participating cities do not receive a dedicated allocation of HOME funds.
Remaining outside of the Urban County Program allows the City to maintain local control over its housing and community development funding strategy and pursue funding opportunities that best meet Coalinga’s specific needs and priorities.
The City has consistently applied for and received CDBG and HOME grant funds that support housing programs previously funded through the former Redevelopment Agency (RDA). These programs continue to provide important housing assistance to low- and moderate-income residents.
The Homeownership Assistance Program, also known as the First-Time Homebuyer Program, assists qualifying families with the purchase of existing or newly constructed homes by providing gap financing.
The Housing Rehabilitation Program assists low- and moderate-income homeowners with improvements to aging housing stock throughout the community. Eligible improvements commonly include roofing, plumbing, electrical systems, heating and cooling systems, insulation, foundation repairs, window replacement, and accessibility modifications for disabled residents.
Based on the City’s historical success in obtaining competitive funding and the increased flexibility afforded by remaining independent of the Urban County Program, staff recommends that the City continue its current approach and decline participation in the Fresno County Urban County Program for the upcoming three-year cycle.
IV. ALTERNATIVES:
The Council could direct staff to opt back into the County’s Urban County CDBG Program.
V. FISCAL IMPACT:
When funding is awarded, there is no match required. An award must be used on eligible programs that have been identified on an application. |