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BACKGROUND The City's Housing and Human Services Commissions met jointly in September and November 2005 to discuss the current funding cycle for the CDBG and City Grant programs and approved application packet materials for both grant programs, discussed funding priorities, and agreed to consider two-year applications for capital and rehabilitation projects and one-year applications for public services funding. In 2006, the City Council approved commission recommendations for an overall funding allocation as shown in Attachment 2 (City Council Resolution 06-22). Attachment 3 provides a summary of the funding that has been allocated through the CDBG program over the past three fiscal years (2004 through 2006). HUD recently notified the City that its allocation for FY 2007 (2007-08) will be $285,394. This represents slightly less than a 1 % decrease from the prior year grant of $287,563 and is generally consistent with nationwide cuts to the CDBG program. Application Process Planning for the FY 2007 CDBG program began in December 2006 when staff sent requests for proposals to local non-profit agencies and published notices in local newspapers. In collaboration with the City of Livermore, staff held two separate workshops (one in Pleasanton and one in Livermore) to discuss the CDBG submittal, review and allocation process. The events were well attended, with approximately 50 agencies represented over the two days. In response to these efforts, a total of sixteen (16) new applications CDBG funding were received for this year. The individual applications are listed in Attachment 4. Review Process As part of the review process established several years ago, the Human Services Commission and Housing Commission mutually determined that the HSC would review non-housing and/or service-related applications and the HC would review applications specifically related to housing or housing projects. As a result, ten (10) of the 16 new applications received were reviewed by the HSC while the remaining six (6) were reviewed by the HC. The final action taken by the Council will be sent to HUD in the form of a statement of the City's CDBG activities for FY 2007 as part of the "Action Plan" for Pleasanton which is scheduled for review and approval by the Council at its meeting of April 17. At the recent HSC and HC meetings, applicant agencies gave individual presentations regarding their applications and answered questions as appropriate. Due to the large number of applications, formal presentations are not scheduled for the City Council meeting. However, applicant agencies have been sent copies of the agenda and agenda report and will have the opportunity to address the Council under the public hearing portion of the meeting if desired. Page 2 of 12