Community Projects May Receive Significant Financial Boost

In a quick 7-0 decision, the  recently approved a Community Development Block Grant (CDBG) Action Plan for the 2012-2013 year.

The plan is part of an agreement with the Department of Housing and Urban Development (HUD) that requires all CDBG recipients to submit an annual action plan showing specific strategies and funding for the upcoming year that are consistent with the agency’s priorities, according to city staff.

The action plan is part of the city’s larger five-year consolidated plan, approved by the council in May 2010.

During the council’s , city staff informed council members that HUD’s budget had been cut, resulting in a 25 percent drop in funding to Gilroy. On April 2, in an attempt to rectify the funding dilemma, council members looked at recommendations from the Citizen Advisory Committee that include city-issued grants available for various nonprofit public-service providers.

Staff noted that the city also has some unspent funding that can be allocated toward community development organizations authorized by HUD. The Downtown Citizen Patrol, for example, would be reissued a $30,000 grant if HUD approves the action plan.

Examples of other organizations that can receive such funding include , which would receive $83,300—with $47,300 of that amount being carried over from previous years—and the Home Access Program.

The CDBG amounts to $457,819 and would be allocated to various projects, organizations and public works.

Also included in the action plan is funding to be allocated to the city’s local Housing Trust fund, which addresses fair housing, homelessness and affordable housing.

The action plan was submitted to HUD May 15.

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