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Committee approves CAO report on CDBG administrative funds and seeks HUD technical assistance

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Summary

The committee voted to approve the City Administrative Officer—s report on fiscal year 2024-25 Community Development Block Grant administrative funding, and endorsed seeking technical assistance from HUD to determine how to maximize program delivery.

The Civil Rights, Equity, Immigration, Aging and Disability Committee voted Friday to approve the City Administrative Officer—s report on the allocation of fiscal year 2024-25 Community Development Block Grant (CDBG) administrative funds and to request technical assistance from the U.S. Department of Housing and Urban Development (HUD).

The CAO report, presented by Julie Jacoby of the CAO—s office, recommended maintaining the current CDBG administrative allocation of $11,900,000 for the fiscal year and asked the city to pursue HUD technical assistance to evaluate whether positions and functions now charged to administration could be shifted to program delivery. "CDBG admin is used for general program oversight and management," Jacoby said, adding that program delivery costs are those tied directly to implementing specific CDBG activities.

The nut of the committee—s action was that CDBG administrative funds have declined with lower entitlement amounts and reduced program income, and the city wants to maximize dollars that go directly to programs. Jacoby told the committee the CAO did not recommend changing the $11.9 million allocation now but recommended HUD help to identify best practices for shifting eligible costs to program delivery.

Rebecca Ronquion of the Civil and Human Rights and Equity Department (CIFD) said the city has secured an initial 32-hour allotment of HUD technical assistance through the Community Compass TA program and planned a kickoff meeting with HUD staff and contractors the following week. "They've made a commitment to work with us to access as much TA as we need," Ronquion said.

Committee members pressed staff on the timing and scope of the TA. Jacoby said the initial planning meeting would clarify how many hours and how quickly the city could expect recommendations; Ronquion said the city would request additional hours if needed. Councilmembers said they hoped to have clearer guidance before the next budget season.

The committee recorded five ayes on the motion to note and file the CAO report and proceed with the HUD technical assistance request. The roll call in the meeting transcript shows Councilmember Soto Martinez, Councilmember Nazarian, Councilmember Jurado, Councilmember Rodriguez and Councilmember Padilla voting yes.