No General Fund impact (100% Federal funds). Funds are provided to the County on a formula basis through the U.S. Department of Housing and Urban Development (HUD).  
  
Catalog of Federal Domestic Assistance Numbers:  
  
Community Development Block Grant (CDBG) Program and Neighborhood Stabilization Program – 14.218  
  
HOME Investment Partnerships Act (HOME) Program – 14.239  
  
Emergency Solutions Grant (ESG) Program – 14.231  
  
Housing Opportunities for Persons with HIV/AIDS - 14.241

A. Community Development Block Grant (CDBG) Program: The primary objective of the CDBG program is the development of viable urban communities through the provision of decent housing, a suitable living environment, and economic opportunity, principally to very-low and low-income persons and households. Funds are allocated annually to eligible Entitlement Jurisdictions by the HUD on a formula basis. The County's Department of Conservation and Development administers the CDBG funds on behalf of the Urban County that includes the unincorporated County and all cities except Antioch, Concord, Pittsburg, Richmond, and Walnut Creek, which administer independent CDBG programs. The FY 2014/15 funding recommendations by the Board of Supervisors' Committees allocate funds to projects and programs that benefit extremely-low, very-low and low-income communities, households, persons, and special needs populations.  
  
On February 28, 2006, the Board of Supervisors amended its funding guidelines, originally adopted in 1993, for use of CDBG funds as follows:  
  
Affordable Housing - 45.1%; Public Services - 15.0%; Economic Development - 14.0%; Infrastructure/Public Facility - 3.9%; Contingency - 2.0%; and Program Administration -20.0%.  
  
The following Committees are responsible for recommending funding allocations in the different program and project categories:  
  
• Family and Human Services Committee – Public Service category, and Emergency Solutions Grant funds  
• Finance Committee – Economic Development and Infrastructure/Public Facilities categories  
• Affordable Housing Finance Committee – Affordable Housing category  
  
In October 2013, in an effort to better align the County's funding cycle with the start of the new FY 2015-2020 five-year Consolidated Plan, the Board of Supervisors approved extending the current two year funding cycle (FY 2012/13 and FY 2013/14) for programs and projects in the CDBG public service and economic development categories for an additional year (FY 2014/15). Consequently, the County only accepted renewal applications from current Subrecipients in those two project categories. However, a Notice of Funding Availability for CDBG Affordable Housing and Infrastructure/Public Facilities projects was published in County-wide newspapers on October 4, 2013, and sent to over 500 entities, including jurisdictions, public agencies, affordable housing developers, community based organizations, and other interested groups active in the Urban County and Consortium areas. Applications in these two categories were due on December 10, 2013 (Affordable Housing projects) and December 16, 2013 (Infrastructure/Public Facility projects).  
  
B. HOME Investment Partnerships Act Program: The purpose of the HOME program is to increase and maintain the supply of affordable housing for lower income households. Funds are allocated to eligible Participating Jurisdictions and Consortia on a formula basis by HUD. The Contra Costa Consortium consists of the unincorporated County plus all cities except Richmond. The City of Richmond is an independent HOME Participating Jurisdiction. As the Consortium representative, the County is responsible for administration and management of the HOME program. The HOME program operates on an annual funding cycle. A Notice of Funding Availability for FY 2014/15 was released at the kickoff meeting on November 4, 2013, and applications were due on December 10, 2013.  
  
C. Neighborhood Stabilization Program (NSP): The County recieved a NSP grant in 2009 under the Housing and Economic Recovery Act. NSP was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. The County is using income from loan payments from the sale of rehabilitated foreclosed homes to assist in the development of new housing on vacant land.  
  
D. Emergency Solutions Grant (ESG) Program: The County receives ESG funds on an entitlement basis for use in funding renovation, major rehabilitation, or conversion of buildings for use as emergency shelters for the homeless; provision of essential services for the homeless; emergency shelter operations and related services; and homelessness prevention and rapid re-housing activities. In October 2013, in an effort to better align the County's funding cycle with the start of the new FY 2015-2020 five-year Consolidated Plan, the Board of Supervisors approved extending the current two year funding cycle (FY 2012/13 and FY 2013/14) for ESG programs and projects for an additional year (FY 2014/15). Consequently, the County only accepted renewal applications from current ESG Subrecipients.  
  
E. Notice of Funding Availability: The Notice of Funding Availability for Affordable Housing and Infrastructure/Public Facilities projects was sent to over 500 nonprofit and public agencies, and other interest groups active in the Urban County and Consortium areas. In addition, a display ad was published in the Contra Costa Times Newspaper. This notice also invited potential applicants to the funding kickoff meeting held on November 4, 2013. The kickoff meeting was attended by nearly 100 persons.  
  
F. Funding Recommendations from the Committees:  
  
1. Family and Human Services (FHS) Committee: The FHS Committee met on April 14, 2014 to consider staff recommendations for FY 2014/15 CDBG Public Service and ESG projects. Because FY 2014/15 is the final year of the current five-year Consolidated Plan, no new applications in these categories were accepted. Currently funded agencies were required to only submit an abbreviated renewal application.  
  
The FHS Committee meeting was publicly noticed and existing grantees were encouraged to attend the meeting and provide input into the allocation process. Various agencies attended the meeting and expressed support of staff recommendations. The FHS Committee considered staff funding recommendations and approved the recommended amounts as presented in Attachments A-1 and A-2.  
  
2. Finance Committee: The Finance Committee was scheduled to meet on April 15, 2014 to consider staff funding recommendations for Economic Development and Infrastructure/Public Facilities projects, but that meeting was cancelled. Consequently, the funding recommendations listed in Attachments B-1 and B-2 are from the Department of Conservation and Development.  
  
Because FY 2014/15 is the final year of the current five year Consolidated Plan, no new Economic Development applications were accepted. Currently funded agencies in the Economic Development category were required to only submit an abbreviated renewal application. However, new applications were considered in the Infrastructure/Public Facilities category. Nine applications were received by the December 16, 2013 deadline.  
  
3. Affordable Housing Finance Committee: On June 27, 1995, the Board established the Affordable Housing Finance Committee (AHFC) to work with the Department of Conservation and Development to develop recommendations for the allocation of CDBG and HOME funds for affordable housing development. The Department of Conservation and Development received seven applications requesting approximately $10 million ($2 million in CDBG, $7.5 million in HOME, and $1.5 million in HOPWA).  
  
The AHFC met on February 7, 2014 to consider staff funding recommendations for CDBG Affordable Housing and HOME projects. Members of the public, including project sponsors, were invited to attend and provide input into the allocation process. Following discussion and comment on each project, the AHFC developed recommendations for the allocation of CDBG and HOME funds for affordable housing programs and projects. Because an applicant for HOME funds needed to submit its applications for nine percent low income housing tax credits to the California Tax Credit Allocation Committee on March 5, 2014, the AHFC’s funding recommendations were approved by the Board on February 7, 2014.   
  
The Board’s approved funding recommendations in the Affordable Housing category (Attachment D) are included again in this Board Order because they are part of the County’s complete Action Plan to be submitted to HUD.  
  
The County will enter into various legal documents with developers in addition to a CDBG or HOME project agreement. These documents may include some or all of the following: Loan Agreement, Promissory Note, Deed of Trust and Security Agreement, Regulatory Agreement, Intercreditor Agreement, Subordination Agreement, Loan Riders and Estoppels. These documents will be submitted for Board of Supervisors approval at a later date, but prior to execution of any legal documents.  
  
G. FY 2014/15Action Plan: The Action Plan describes the projects and programs the County will undertake during the program year to address priority needs identified in the Contra Costa County FY 2010-15 Consolidated Plan, and identifies the use of grant funds and program income received during the program year by activity, and proposed accomplishments. The Consolidated Plan also includes actions the County proposes to undertake during the year to address obstacles in meeting under-served persons, foster and maintain affordable housing, reduce the number of households living under the poverty level, and enhance coordination between public and private housing and social service agencies. In order to begin the program year on time, the County's FY 2014/15 Action Plan must be approved by the Board and submitted to HUD by May 15, 2014.  
  
H. California Environmental Quality Act (CEQA): The Action Plan is exempt from CEQA review. However, individual projects may be subject to further review, which will be undertaken by the project's lead agency. The County is a responsible agency for most housing projects. A CEQA recommendation will be made to the Board when the legal documents are submitted for approval.  
  
I. National Environmental Policy Act (NEPA): All CDBG, HOME, NSP, and ESG projects and programs are subject to NEPA and 24 CFR Part 58 review. The NEPA review for each project will be completed prior to entering into project agreements or other legal documents for that project.

Because the County must submit its application for CDBG, HOME and ESG funding to HUD by May 13, 2014, delay in approving the recommendations by the Committees may result in the County not submitting its application on time.

Most of the projects and programs funded with CDBG, HOME, and ESG funds address at least one of the five community outcomes established in the Children's Report Card.