December 2, 2003

SUBJECT: Request to Amend the FY 2003/2004 Action Plan to Increase Community Development Block Grant (CDBG) Funding for Project Match and Provide Funding to the Mid-Peninsula Alano Club and Budget Modification No. 16

REPORT IN BRIEF

The City provides funding through CDBG funds to human services agencies for a number of services, such as support services to the elderly, homeless and other persons with special needs. The City has detailed agreements with each agency outlining the responsibilities involved with the receipt of federal funds and the performance standards to be met each year. If an agency is unable to fully provide services, funds may be disencumbered from their contract, and these unexpended CDBG monies would be available for other public service activities for the next fiscal year. 

At the end of FY 2002/2003, there were three agencies with unexpended funds totaling $7,016 that are available for reallocation to other agencies or existing agencies.  The Housing and Human Services Commission (HHSC) has reviewed these requests and has recommended funding Project Match in the amount of $2,508 and Mid-Peninsula Alano Club (MPAC) in the amount of $4,508.

BACKGROUND

On December 11, 2001, City Council approved CDBG reallocation guidelines, which provide for the transfer or reallocation of CDBG funds from one project to another.  Under Section II funds transfer process (it states): 

During the program year, the Housing Officer, the Director of Community Development, or the City Manager may see a need to transfer funds from one project to another.  The procedure for such transfers is as follows:

 

For Fund transfers not deemed Substantial under I.C.1; A staff report and/or Budget Modification will be prepared and submitted to the City Manager.  Reallocations of funds require approval of City Council.  The Housing Officer will notify HUD of all reallocations.

Please note that a substantial amendment is one that includes an increase or decrease in the original allocation mix greater than 15% of the total grant.

This flexibility of reallocating small sums of money allows the transfer of funds from a prior year into the current year and have it utilized as quickly as possible by an agency with a specific need. (see the attached CDBG Reallocation Guidelines)

Project Match currently receives funding in the amount of $8,685 from the City’s CDBG fund. The program is designed to serve low-income seniors 60+ year of age residing in residences in Sunnyvale, and provides support services to all residents to facilitate community, to assure access to needed health care services and to support the abilities of their residents to remain independent for as long as possible.  The support services model was developed by Project Match specifically to assist seniors residing in group living and shared housing situations.

In FY 2000/2001, the MPAC had been awarded funds from the General Fund outside group funding process for rental costs in the amount of $5,000.  The agency was unable to use their grant because they had lost their meeting site.  MPAC has now located another site to hold meetings at 1155 Reed Avenue and is requesting funds to assist with rental costs.  The agency’s primary mission is to provide a physical site wherein all those seeking recovery may gather, meet, greet, reconnect and establish new connections to support each individual’s commitment to staying clean and sober.  The agency provides a physically and emotionally safe environment to its members and all those using its facilities seeking recovery from drug and alcohol addictions.

EXISTING POLICY

Socio-Economic Sub-Element:

POLICY 5.1.H.3: Encourage the provision of services for older adults in Sunnyvale.

GOAL 5.1h.  Identify pressing health and social needs of the Sunnyvale community, encouraging appropriate agencies to address these needs in an adequate and timely manner.

DISCUSSION

After CDBG allocations for FY 2003/2004 had already been processed, staff received requests from both Project Match and MPAC for available CDBG funds.  Project Match requested $3,315 in additional funds due to increased staffing of support services provided to senior residents of group homes in Sunnyvale for FY 2003/2004.   MPAC requested $5,000 in funding from available CDBG funds to provide rental assistance for their club site.

Project Match currently owns two Senior Group Residence homes in Sunnyvale.  The two homes have a total of nine residents, four at Wolfe Road and five at the Klee/Offenbach Duplex.  In FY 2002/2003, the Project Match-Senior Group Residence Program provided 160 staff hours in direct contact with nine seniors living in Sunnyvale.  The agency proposal for FY 2003/2004 program year projected 160 units (hours) of support services.  However, based on experience over the preceding five months prior to the end of the fiscal year, Project Match projected a need for support services to rise to 228 units of service; a 40% increase over what was projected in January 2003.  The agency has identified a need to increase their FY 2003/2004 budget and has asked for additional CDBG funding from the City.  The additional funds will help meet the increased demand for support services.

MPAC, a local non-profit agency, provides service and opportunity to its membership and the local community in the area of recovery from alcoholism and other addictions.  The agency was not able to submit a proposal during the FY 2003/2004 General Fund request for proposal process and therefore was not able to obtain funding that would provide rental assistance for their club site at that time.

At the end of FY 2002/2003, there were three agencies with unexpended funds totaling $7,016 that are available for reallocation to other agencies or existing agencies. At the September 24, 2003 HHSC meeting, staff presented the total disencumbered funds for FY 2002/2003 and the funding requests from Project Match and MPAC. The HHSC has reviewed these requests and has recommended funding Project Match in the amount of $2,508 and MPAC in the amount of $4,508.

Staff recommends that Council approve Budget Modification No. 16 and increase the appropriation to Project Match by $2,508 and appropriate funding to MPAC in the amount of $4,508. 

FISCAL IMPACT

This budget modification will have no fiscal impact to the General Fund, other agency funding, or CDBG activities. This will not impact other CDBG programs or the maximum spending limit attached to the outside group-funding category, which is a maximum of 15% of the CDBG grant plus prior year program income.

The requested budget modification will reallocate funds that were disencumbered from the unexpended FY 2002/2003 CDBG funds budgeted for Community Association for Rehabilitation, Emergency Housing Consortium and Outreach.

 

BUDGET MODIFICATION NO. 16
FISCAL YEAR 2003/2004
	Current		Increase (Decrease)		Revised
Community Development Block Grant Fund
Expenditures:
Project 802450 – Project Match Sr. Shared Housing	$  8,685		$  2,508		$ 11,193
New Project - Mid-Peninsula Alano Club	$         0		$  4,508		$  4,508
Reserves:
FY 2002/2003 Unexpended CDBG Funds	$  7,016		($ 7,016)		$         0

PUBLIC CONTACT

The request for additional funding from Project Match for increased support services for its Sunnyvale Senior Group Residence Services, and MPAC who made a presentation for funding to provide rental costs was reviewed and unanimously approved by the HHSC at its meeting on September 24, 2003. 

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.

ALTERNATIVES

1. Approve Budget Modification No. 16 and increase FY 2003/2004 appropriation for Project Match to $11,193 and appropriate funding to the Mid-Peninsula Alano Club in the amount of $4,508.

2. Do not approve Budget Modification No. 16 and decline the requests for funding from Project Match and Mid-Peninsula Alano Club.

RECOMMENDATION

Staff recommends Alternative 1. 

Prepared by:

Katrina L. Ardina
Housing Programs Analyst

Reviewed by:
 

Annabel Yurutucu
Housing Officer 

Reviewed by:

Robert Paternoster
Director, Community Development 

Reviewed by:

Mary J. Bradley
Director of Finance

Approved by:

Robert S. LaSala

City Manager

Attachments

A. Reallocation Guidelines approved by Council on December 11, 2001. The guidelines provide for the transfer or reallocation of funds from one project to another. (pdf format) 

B. Minutes of Housing and Human Services Commission, September 24, 2003. 

C. Project Match-Senior Group Residence Program (pdf format)