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I. HOUSING AND HUMAN SERVICES GRANT (HHSG) PROGRAM BACKGROUND The City implemented its new Housing and Human Services Grant (HHSG) program with the beginning of the current fiscal year. The HHSG program combines funding from two federal grants — CDBG (Community Development Block Grant) and HOME (HOME Investment Partnership Program) — and two local sources — the Lower Income Housing Fund and General Funds for human services (part of the former "City Grant" program) — into a single streamlined grant program. The proposed allocation of grant funds covers the City's and HUD's next fiscal year. However, the City generally refers to this as its FY2012 fiscal year while HUD refers to it as its FY2011 year. As a result, to be consistent with HUD, this report will refer to these expenditures as being part of the FY2011 grant funding cycle. HHSG applications for FY2011 grant funding cycle were solicited in early December through late January. Twenty -nine (29) applications were received by the January 24 deadline with a total funding request of $773,457. This year, for the first time, applications were submitted electronically via a new computer software system which allowed members of the Human Services Commission to review the applications on line. Consequently, no printed materials were distributed this year. DISCUSSION Expected HHSG Funding Levels The following table summarizes the anticipated composite level of funding for the HHSG program for the coming fiscal year: FY2010 FY2011 Source Funding Funding Notes 9 (Est d.) CDBG $298,922 $270,000 HUD has not yet advised the City of its final CDBG allocation amount. Preliminary information indicates an approximate 7.5% decrease from FY2010 (based on the administration's recommendation). However, the City's ultimate allocation could be significantly less since the House of Representatives is proposing a 62.5% cut to CDBG. The estimate (based on a 10% decrease from FY2010) includes approximately $175,500 for capital /rehab and $40,500 for public services (15% maximum) and $54,000 for program administration (20% maximum). City Gen. $170,000 $140,000 Formerly City Grant funds for human services; includes a $130,000 Fund` General Fund annual allocation plus $10,000 from the former Child Care Links contract. * Last year the Child Care Links amount was $40,000 which is the reason this year's reduction. Subtotal: $468,922 $410,000 [Funding reviewed by the Human Services Commission] HOME $240,000 $170,000 Based on the current year requests for projects that have been funded from HOME in recent years. The City actually has about $600,000 in unallocated HOME funds from prior years; however, the Housing Commission has expressed an interest in developing a sufficient pool to provide funding to a single housing project in the near future. Page 2 of 8