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Oroville council directs staff to pursue CDBG storm‑drain application amid program limits
Summary
City staff briefed council on the 2025 CDBG NOFA and, noting expenditure milestones and recent awards, the council gave direction to apply for a $3.3 million storm‑drain project and general administration funds rather than smaller service grants.
Oroville — The Oroville City Council on Nov. 4 directed staff to pursue a Community Development Block Grant (CDBG) application focused on a storm‑drain infrastructure project after staff said rules and recent awards limit the city’s options this cycle.
City housing and community development staff summarized the 2025 CDBG Notice of Funding Availability, noting the portal is expected to open Dec. 1, 2025, and applications are due Jan. 30, 2026. The state’s NOFA sets aside funds for jurisdictions that have not received CDBG awards in the past five years and gives all other non‑entitlement jurisdictions a competitive pool; about $27 million is available statewide, staff said. Individual jurisdictions may apply for up to $3.6 million, with maximums by activity: public services/planning up to $300,000, housing rehabilitation up to $1.5 million, and project awards up to $3.3 million.
Staff explained a key constraint: a 50% expenditure milestone on previously awarded grants. Because the city’s 2024 CDBG award remains recently executed and not yet 50% expended, staff said they cannot reliably meet milestone requirements for program or public‑service awards this cycle. After exploring alternatives and discussing whether program income could be repurposed, staff recommended applying for a storm‑drain project (the maximum $3.3 million available for a project) and the program’s general administration allocation.
YMCA staff and local service providers urged continued investment in childcare programs when public comment was opened, saying past CDBG‑funded grants significantly expanded summer childcare capacity and that losing those funds reduced program enrollment sharply.
Councilmembers pressed staff on milestone mechanics, timing and whether project engineering could be made shovel‑ready to strengthen an application. Council then closed the public hearing and, by consensus, directed staff to prepare the storm‑drain application and return with a resolution for formal application approval.
Next steps: staff will refine project design and bring a resolution authorizing the grant application to a future meeting for formal action.
