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I. HOUSING AND HUMAN SERVICES GRANT (HHSG) PROGRAM BACKGROUND The City implemented an amended Housing and Human Services Grant (HHSG) program at the beginning of fiscal year 2010-11. 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 FY2014 fiscal year while HUD refers to it as its FY2013 year. As a result, to be consistent with HUD, this report will refer to these expenditures as being part of the FY2013 grant funding cycle. HHSG applications for FY2013 grant funding cycle were solicited in early December through late January. Twenty-five (25) applications were received by the January 28 deadline with a total funding request of $739,359. This is the third year in which applications were submitted electronically via a 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: Source FY2012/13 FY2013/14 Notes Funding Funding CDBG $192,187 $205,400 At the time this report was written, HUD had not yet advised the City of its final CDBG allocation amount but advised to anticipate a 5% reduction from last year's grant amount of$240,000, or approximately $228,000. Similar to past years and in accordance with HUD guidelines, $45,600(20%)of this funding will be rel:ained by the City to cover administrative costs, leaving $182,400 available for allocation. In addition, there is about $23,000 in unused capital/rehab funding from three prior projects that is recommended for reallocation to this year and as a result, the total available for allccation is $205,400 ($228,000 total FY2013 allocation less$45,600 for admin plus$23,000 reallocation from previous year equals $205,4001. Note that of this amount, only $34,200 (15% of the $228,000 grant amount) can be used for public services. City Gen. $160,000 $160,000 Includes $140,000 FY2013-14 annual allocation plus$20,000 diverted I Fund last year from the former Eden MR"211"contract. Page 2 of 20