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2020-12-02 City Council Item No. 11.2 Community Development Block Grant (CDBG) Substantial Amendment to Program Year 2020/2021 Annual Action Plan for CDBG-CV3 Funds Presentation Regular MEETING - Additional Meeting MaterialsCommunity Development Block Grant (CDBG) Substantial Amendment to Program Year 20/21 Annual Action Plan for CDBG-CV3 Funds Citizen Participation Plan (CPP) Per the City’s Citizen Participation Plan,a Substantial Amendment to an Annual Action Plan is required when a “substantial”change is proposed, which includes: •The addition of a new activity or priority; •A change in the nature of an activity, its location, or its target population; or •A change of more than 50 percent in the amount of funds allocated to an activity. Community Development Block Grant-CV3 On September 11 ,2020,HUD’s Office of Community Planning and Development (CPD)posted the third (final)round allocations of $1.988 billion from the $5 billion supplemental Community Development Block Grant funds (CDBG-CV)Congress appropriated by the CARES Act. City of Menifee will receive an additional $404,459 in Community Development Block Grant-Coronavirus (CDBG-CV3) funding. CDBG-CV Overview •All CDBG-CV activities must prepare,prevent,and respond to COVID-19 •CDBG-CV Eliminates the 15% cap for Public Services •HUD reduced the standard 30-day public comment period to 5 days Proposed Use of CDVG-CV3 Funds Activity Budget Rental & Mortgage Assistance $254,459 Public Services –Food Activity $50,000 Public Services –Boys & Girls Club $20,000 Public Services –Other $70,000 Administration $10,000 Total $404,459 Rental & Mortgage Assistance Purpose: To provide a financial assistance grant to eligible low-income households that have been affected by the COVID-19 pandemic. •$1,500 per month, for no more than 6 consecutive months –Max. $9,000 Eligibility & Use of Funds: •Must reside with the City of Menifee •Applicant cannot exceed the 80% median income for Riverside County as set by HUD •Have experienced an economic impact caused by COVID-19 (job loss, furlough or reduction in hours or pay) •Funds can be used to cover current and past payments starting March 2020 •No future payments •Payments will be made directly to landlord or mortgage company 2020 Income Moderate Income Level Riverside County Median Family Income $75,300 Household Size 51% to 80% of Area Median Income 1 $42,200 2 $48,200 3 $54,250 4 $60,250 5 $65,100 6 $69,900 7 $74,750 8 $79,550 Staff Recommendation 1.Conduct a Public Hearing; 2.Adopt a Resolution approving the Substantial Amendment to PY2020/2021 Annual Action Plan and; 3.Authorize staff to proceed with the submittal of the Substantial Amendment to HUD. Edna I. Lebrón, Sr. Management Analyst (951) 723-3713 or elebron@cityofmenifee.us