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ALLOCATION OF SURPLUS / DF,FICIT CDBG FUNDING Due to the timing of the passage of the economic stimulus package and its relationship to the CDBG program, the City did not receive the final amount of its grant allocation for FY 2009 in time to incorporate in the Action Plan (as noted earlier, a conservative estimate of $250,000 was used for planning purposes). In addition, the American Recovery and Reinvestment Act (ARRA) of 2009 will result in an additional allocation of $74,608 in CDBG Recovery (CDBU-R) funding for Pleasanton; however, IIUD has yet to release its guidelines on the use of these additional CDL3G funds. Because of the tentative status of the dollar amount of CDBG funding and the timing of guidelines for the use of CDBG-R funds, the City Council approved a general contingency plan to address the allocation of a surplus (or deficit) in overall CDBG fimding. 'fhe contingency plan (as it relates to the preceding funding allocation table) is as follows: • Any surplus Public Services funding shall be allocated proportionately to the tour underfunded projects (Axis Community F[ealth, Legal Assistance Cor Seniors, Open I (cart Kitchen, and Spectrum Community Services) in proportion to the amount that was underfunded for each project. • In the case of a deficit: 1) If the Public Services funding is less than $37,500 but greater than $35,000, the deficit shall be deducted from Spectrum; or 2) [f the Public Services funding is less than $35,000, funds shall be distributed equally among all seven projects (i.e., all projects will receive an equal amount that is less than $5,000). • If the final CDBG grant amount is greater than $250,000, the surphls in capital/rehab funds shall be allocated to Neighborhood Solutions for the Housing Rehab Program (and the HOME: funds allocated for the same project shall be reduced proportionately so that the total amount of assistance remains at $202,843). • [f the final CDBG grant amount is less than $250,000, any deficit incapital/rehab funds shall be deducted from Neighborhood Solutions (and the [[OME funds shall remain at $L00,000). • The allocations for the Axis Community Health and Sojourner 1 louse capital projects shall remain the same regardless of the tnal grant amount. The receipt of any additional CDBG fiords beyond the $250,000 estimate as well as the allocation of CDBG-R fiords allocated through the ARRA shall be applied according to the plan described above (and subject to the CDBG-R guidelines established by HUD). Action Plan - FY09 City of Pleasanton Pale Ib