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Page 3 of 6 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />Spending Limitations <br />Planning and Administration - HUD regulations allow for up to 20% of PY 2025 CDBG grant funds <br />and 20% of PY 2025 program income to be used for CDBG administration and fair housing and <br />10% of PY 2025 HOME funds to be used for HOME planning and administration. If federal funds <br />are not used for planning and administration expenses related to the use of federal grants, the <br />General Fund would have to absorb these costs. <br />Public Services – CDBG regulations allow for up to 15% of the PY 2025 CDBG grant and 15% of the <br />PY 2024 CDBG program income to be used on public service activities. <br />HOME Community Housing Development Organization (CHDO) - At least 15 percent of HOME <br />funds must be set aside for housing activities undertaken by a special type of nonprofit called a <br />Community Housing Development Organization (CHDO). <br />CDBG Funds <br />The City has a $15,000 grant minimum to ensure that the value of the grant exceeds the administrative <br />burdens of implementing the numerous CDBG requirements. Additionally, the City operates on a two- <br />year funding cycle for certain programs to reduce the administrative burden on both City and grantee <br />staff that would be caused by an annual application process by allowing applicants to submit a streamlined <br />renewal application for the second year of funding. The public service, fair housing, microenterprise and <br />minor home repair projects selected for this PY2025 Action Plan are in the second year of the two-year <br />funding cycle. See Table 2 for the final funding recommendations. <br />Funding Recommendations <br />The City issued a Notice of Funding Availability (NOFA) in December 2024 for CDBG-funded housing and <br />public facilities activities and HOME-funded affordable housing activities. The City received four CDBG <br />applications and two HOME applications. Note, two projects applied for both CDBG & HOME funding, so <br />there was a total of four proposed projects. As with prior years, requests exceeded the funding available. <br />The HHCC evaluated applications based on the applicant’s capacity to meet all federal requirements, <br />CDBG and HOME eligibility, consistency with the Con Plan funding priorities, program impact and <br />outcomes, outreach/collaboration efforts, budget/cost reasonableness, fund leveraging, and the project’s <br />ability to meet grant expenditure deadlines. <br />On March 25, 2025, the HHCC held a public hearing to make funding recommendations (see Table 2 ). The <br />HHCC recommended CDBG funding for Habitat for Humanity’s Home Preservation Program and Mental <br />Health Association’s interim housing shelter rehabilitation project and renewal funding for all CDBG <br />applicants on a two-year cycle that re-applied.1 HHCC recommended HOME funds for MidPen’s Shores <br />Landing elevator addition project and HOME CDHO funds for Eden Housing’s 847 Woodside affordable <br />housing Project. <br />1 Two of the agencies selected for CDBG funding in PY 2024, Ombudsman Services and Center for Independence of <br />Individuals with Disabilities, ended up declining funding for both PY 2024 and PY 2025. <br />7.A. - Page 3 of 189 <br />207