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<,FORN'P City Council Staff Report
July 14, 2020
Agenda Item No. 14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator,
Iwooding@newportbeachca.gov
James Campbell, Deputy Community Development Director,
jcampbell@newportbeachca.gov
PHONE: 949-644-3236
TITLE: Resolution No. 2020-69: Community Development Block Grant —
Economic Development Job Retention Program
ABSTRACT:
As a result of the global pandemic COVID-19, and pursuant to funding from the 2020
federal stimulus plan — Coronavirus Aid, Relief, and Economic Security Act ("CARES
Act"), the City of Newport Beach ("City") will receive an additional allocation of funding
under its participation in the U.S. Department of Housing and Urban Development's
Community Development Block Grant ("CDBG") Program. With the additional allocation
of $219,324 in CDBG CARES Act funds ("CDBG-CV"), the City has developed an
economic development program to assist small businesses suffering from economic
hardships resulting from the pandemic. This Substantial Amendment to the 2020-21
Annual Action Plan ("Amendment") is required to notify HUD how the City plans to allocate
the CDBG-CV funds to projects and programs that benefit low- and moderate -income
Newport Beach residents. The Amendment also programs $250,371 of funds already
included in the 2020-21 Annual Action Plan for economic development. Combined, this
program allocates $469,695 to an economic development program that supports
businesses by helping to create and retain jobs.
RECOMMENDATION:
a) Conduct a public hearing to receive comments on the Draft Substantial Amendment
to the 2020-21 Annual Action Plan;
b) Find the approval of the Substantial Amendment to the 2020-21 Annual Action Plan
exempt from the National Environmental Policy Act ("NEPA") pursuant to 24 CFR Part
58, Section 58.34;
c) Find the approval of the Substantial Amendment to the 2020-21 Annual Action Plan
is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
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Resolution No. 2020-69: Community Development Block Grant — Economic
Development Job Retention Program
July 14, 2020
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physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly;
d) Adopt Resolution No. 2020-69, A Resolution of the City Council of the City of Newport
Beach, California, Approving a Substantial Amendment to the 2020-21 Annual Action
Plan for the Federal Community Development Block Grant Program (Attachment A);
and
e) Authorize the City Manager to:
1. Submit the Substantial Amendment to the 2020-21 Annual Action Plan to HUD;
2. Execute the CDBG-CV Program Grant Agreement and all related documents on
behalf of the City;
3. Execute the sub -recipient agreements with the nonprofit organizations receiving
allocations of CDBG funds in the Substantial Amendment to the 2020-21 Annual
Action Plan; and
4. Authorize the Community Development Director, or his/her designee, to be the
official representative of the City of Newport Beach, and to submit required
environmental documentation for CDBG projects.
FUNDING REQUIREMENTS:
This item provides for City Council approval of expenditures for $469,695 in CDBG and
CDBG-CV funds for the 2020-21 fiscal year. There is no fiscal impact to the General Fund.
DISCUSSION:
Background
The City receives a formula grant allocation of CDBG funds each year from the federal
government, through the U.S. Department of Housing and Urban Development ("HUD").
The objective of the CDBG program is to develop viable urban communities by providing
suitable housing and expanding economic opportunities for low- and moderate -income
residents.
Considering the economic impacts resulting from the global pandemic COVID-19, under
the 2020 federal stimulus plan — CARES Act, the City will receive an additional allocation
of $219,324 of CDBG funding from HUD. Considering the financial hardships felt by many
small businesses in Newport Beach, staff has developed an economic development
program using the CARES Act funds in combination with the $250,371 currently
earmarked in the 2020-21 Annual Action Plan. For a combined economic development
program of $469,695.
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Resolution No. 2020-69: Community Development Block Grant — Economic
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Proposed Substantial Amendment to 2020-21 Annual Action Plan
In order to program the annual grant allocation earmarked for a future economic
development program and the CARES Act funds to a specific activity, the City must
prepare and submit to HUD a Substantial Amendment to its 2020-21 Annual Action Plan.
While the proposed economic development program identified in the Amendment
anticipates the City will assist at least 20 local small businesses and create or retain
approximately 16 low- and moderate -income jobs, the funding levels recommended
below will allow the City to assist a larger number of businesses and retain more jobs.
The funding sources and amounts to be allocated to the economic development program
are outlined in the table below, and are also reflected in the Amendment, which is included
as Exhibit A to Attachment A to this staff report.
CDBG FY2020-21 Funds
Capital Projects
Recommended
Economic Development — CDBG Small Business Grant Program
$48,860
Economic Development — CDBG Small Business Grant Program
$201,511
Subtotal
$250,371
*total includes prior years unallocated funds.
CDBG-CV Funds
Category
Recommended
Administration (subject to 20% grant cap)
CDBG Program Administration
$43,864
Capital Projects
Economic Development — CDBG Small Business Grant Program
$175,460
Subtotal
$219,324
Total
$469,695
The recommended economic development program is already included in the Strategic
Plan priorities of the 2020-24 Consolidated Plan, which was approved by the City Council
at its meeting on May 12, 2020.
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Resolution No. 2020-69: Community Development Block Grant — Economic
Development Job Retention Program
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Proposed CDBG Economic Development Grant Program
Similar to the $2.1 million in funding received under the Coronavirus Relief Funds Grant
Agreement with the County of Orange, and the City's resulting Small Business Relief
Grant Program ("Relief Grant"), this proposed CDBG Economic Development Grant
Program ("Program") will direct funds to small businesses in Newport Beach that have
been affected by COVID-19 and need financial support to sustain their business
operations. The Program, as further outlined and described below, will mirror the terms
and conditions of the Relief Grant, with eligibility determined based on HUD's
requirements for microenterprises and job creation and/or job retention.
The Program will mirror the Relief Grant program by giving priority to retail, restaurants,
and personal service establishments (i.e. hair salons and barber shops, nail salons, small
gyms/health clubs).
Eliaibilitv under HUD auidelines
Pursuant to HUD guidelines, the Program will allocate funding to small businesses
located in Newport Beach that meet one or more of the national objective criteria listed
below:
■ The business is a microenterprise, which is a business with five or fewer
employees including the owner, and the owner of the business meets the criteria
for low- or moderate -income persons; and/or
■ The business uses the grant funds to create or retain permanent job(s) where at
least 51 -percent (51 %) of the full-time equivalent jobs involve the employment of
low- and moderate -income persons.
o Low- and moderate -income limits are based on household income at or below
80 -percent (80%) of the Orange County median income, adjusted for
household size, per the table below:
Low- and Moderate -Income Limits
Orange County, California
MAXIMUM Household — GROSS Income Limits
as of July 1, 2020
1 person
2 person
3 person
4 person
5 person
6 person
7 person
8 person
$71,750
$82,000
$92,250
$102,450
$110,650
$118,850
$127,050
$135,250
Gross Income includes: All gross income (before any deductions) for persons 18 years of
age and older including but not limited to, wages, bonuses, unemployment, social security,
pensions, disability, child support, alimony, asset income from retirement accounts,
checking accounts, savings account, CDs, stocks, bonds, etc.
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Resolution No. 2020-69: Community Development Block Grant — Economic
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Terms & Conditions
Staff is proposing the program framework outlined below:
■ Additional eligibility requirements:
o The business was negatively impacted by COVID-19, and can demonstrate the
need for financial support resulting from the impact of the COVID-19 pandemic
and the California Governor's March 2020 stay-at-home order;
o The business is a for-profit enterprise and is located within Newport Beach city
limits. Nonprofits who engage in technical assistance type of activities that
assist for-profit businesses are eligible;
o The business has or will obtain a Data Universal Numbering System (DUNS)
Number if a grant is awarded; and
o The business must submit the application, and all required supporting
documentation.
■ Minimum requirements:
o The business must be a legal allowed use and located in a commercial or
industrial space;
o The officers of the business must reside in Orange County, California;
o The business must have an active Newport Beach business license for a
minimum of six (6) months;
o The business must have 30 or less full-time, or an equivalent combination of
full and part time employees, including the owner;
o The business must be in good standing with the City, meaning it must be
current on its business license fees or business improvement district
assessment (or in good standing on its payment plan for either of these fees)
and it must not have any existing municipal code violations;
o The business must disclose whether they have received capital from the federal
Paycheck Protection Program (PPP) or an Economic Injury Disaster Loan
(EIDL), or the City's Small Business Relief Grant Program. If a business
received PPP or EIDL funds, they are still eligible to receive funds from this
Program; however, the funds cannot be used for the same expenses.
Additionally, priority will be given to applicants that have not received funding
through any of these programs.
■ Businesses who received funds under the City's Small Business Relief
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Resolution No. 2020-69: Community Development Block Grant — Economic
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■ Grant Program are not eligible for this Program unless all other applicants
have been funded.
■ Grant Amounts
Applicants would be eligible to receive a grant of up to $10,000 based on the
following business size criteria:
o Businesses with less than 5 employees are eligible for a grant of $5,000.
o Businesses with 6-10 employees are eligible for a grant of $7,500.
o Businesses with 11-30 employees are eligible for a grant of $10,000.
■ Funding Priority
The Program would be open to any small business that meets the above listed
HUD eligibility criteria and the terms and conditions. Based on the interest level
and volume of applications from the Relief Grant, the number of qualified
applicants will likely exceed the number of grants available.
Program Administration
Staff proposes to use the nonprofit Orange County Small Business Development Council
("OC SBDC"), the administrator contracted by the City to administer the Relief Grant, to
administer this Program as well. OC SBDC's prior experience administering small
business grant and loan programs with other local jurisdictions, as well as staff's
assessment of their recent work on the City's grant program makes them the ideal
candidate to administer the Program. Additionally, OC SBDC does not charge a fee to
administer the program, which allows more of the funds to be granted to small businesses
rather than allocated to overhead costs.
In accordance with HUD guidelines, approximately 20 percent (20%) of the CDBG-CV
funds have been allocated to cover costs associated with administration of the funds.
Administration activities may include, but are not limited to, reviewing application
documents to confirm compliance with HUD's national objectives, data entry into HUD's
funds disbursement system (IDIS), preparing and submitting reports to HUD to document
activity and fiscal year-end milestones. Staff does not anticipate spending most of the
$43,864 allocated to administration, as OC SBDC does not charge for their services, and
the remaining administrative work is anticipated to be covered under the City's CDBG
administration consultant's existing contract. If unused, the CDBG-CV administration
funds will be redirected to issue additional economic development grants under the
Program.
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Resolution No. 2020-69: Community Development Block Grant — Economic
Development Job Retention Program
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Next Steps
If approved by the City Council, then the Program will be advertised in the days following
this hearing to ensure members of the community are made aware of the program.
Following the advertising period, the application will open at the beginning of
August 2020.
The application and award process are expected to proceed as follows:
1. Program advertised and OC SBDC offers webinars with program guidance to
assist interested businesses in completing their applications.
2. Application period opened for a specific number of days, with applications received
electronically or by mail.
3. OC SBDC will review and vet the applications against the Program requirements
and terms and conditions and oversee a lottery system if the number of
applications exceed the available funding.
4. OC SBDC to work with applicants to collect documentation, including HUD
required documentation.
5. Grant monies disbursed to recipients once necessary documentation is received
and verified by OC SBDC.
Community Outreach
On July 8, 2020, a notice was published on the City's website, and emailed to all parties
that have signed up to receive notifications of the Planning Division, informing the general
public the City had prepared a Substantial Amendment to the 2020-21 Annual Action Plan
(Exhibit A to Attachment A), and the documents would be available for review and
comment until the public hearing on July 14, 2020. To date, no public comments have
been received. Additionally, the current adopted Citizen Participation Plan requires that a
public hearing be held to receive testimony from interested residents or parties regarding
the Amendment. The July 14, 2020, public hearing fulfills this requirement.
ENVIRONMENTAL REVIEW:
The development of required plans and allocation of CDBG program funds is an
administrative activity exempt under 24 FR Part 58, Section 58.34 of the National
Environmental Policy Act of 1969 (NEPA), as amended.
Staff recommends the City Council find approval of the Substantial Amendment to the
2020-21 Annual Action Plan is not subject to the California Environmental Quality Act
("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the
activity is not a project as defined in Section 15378) of the CEQA Guidelines, California
Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
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Resolution No. 2020-69: Community Development Block Grant — Economic
Development Job Retention Program
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Page 8
NOTICING:
In accordance with the HUD -approved waiver of CPD Grant Program Requirements to
Prevent the Spread of COVID-19 and Mitigate Economic Impacts caused by COVID-19,
the 5 -day public review and comment period, notice of the public hearing was published
on the City's website on July 8, 2020. Notice was also emailed to all parties that have
signed up to receive notifications of the Planning Division. Further, the agenda item has
been noticed according to the Brown Act (72 hours in advance of the meeting at which
the City Council considers the item).
Subject to a HUD -approved waiver the document was prepared and made available for
a 5 -day public review and comment period, which began on July 8, 2020, and concludes
with this public hearing before the City Council on July 14, 2020.
ATTACHMENTS:
/_VW110iaiii_d0 i 1117mel •,
14-8
ATTACHMENT A
RESOLUTION NO. 2020-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING A
SUBSTANTIAL AMENDMENT TO THE 2020-2021
ANNUAL ACTION PLAN FOR THE FEDERAL
COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
WHEREAS, the City of Newport Beach ("City") participates in the United States
Department of Housing and Urban Development's ("HUD") Community Development
Block Grant ("CDBG") Program;
WHEREAS, HUD requires the City to prepare a Five -Year Consolidated Plan for
the use of HUD grant programs outlining the use of the CDBG funds and the strategic vision
for housing and community development in the City;
WHEREAS, the City Council adopted Resolution No. 2020-51 on May 12, 2020
approving the 2020-2024 Consolidated Plan, the 2020-2021 Annual Action Plan, and the
Citizen Participation Plan for the CDBG Program;
WHEREAS, the 2020-2021 Annual Action Plan appropriates the CDBG annual
grant and other available grant funds during the fiscal year,
WHEREAS, as a result of COVID-19, the United States Congress passed the
Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in March 2020,
authorizing $2.2 trillion in stimulus measures to prevent, prepare for, and respond to the
COVID-19 pandemic, including $2 billion for CDBG entitlement communities;
WHEREAS, on March 4, 2020, California Governor Gavin Newsom issued a
Proclamation of a State of Emergency followed by multiple executive orders including
Executive Order N-33-20 ordering all residents to stay at home;
WHEREAS, the City will receive an additional $219,324 from HUD under the
CARES Act ("CDBG-CV"), which is separate and distinct from the City's regular allocation
of CDBG funds;
WHEREAS, a substantial amendment to the 2020-2021 Annual Action Plan is
necessary because the CDBG-CV funds were not identified in the previously approved
plans, therefore, the amendment is prepared to appropriate the CDBG-CV funds and
create an economic development program to issue small business relief grants;
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Resolution No. 2020 -
Page 2 of 3
WHEREAS, the CDBG capital funds will be allocated to an economic development
program to be determined and the CDBG-CV funds, mustbe appropriated to CDBG eligible
activities consistent with the City's 2020-2024 Consolidated Plan;
WHEREAS, in the event of a substantial amendment to an annual action plan, the
Citizen Participation Plan normally requires a 30 -day public review period followed by a
public hearing prior to adoption; however, in light of COVID-19, HUD reduced the notice
period to 5 days and authorized the City to determine the form of notice pursuant to the Waivers
of Community, Planning and Development ("CPD") Grant Program Requirements to Prevent
the Spread of COVID-19 and Mitigate Economic Impacts caused by COVID-19;
WHEREAS, on July 8, 2020, the City published notice on the City's website and
sent an e-mail notification that the draft substantial amendment to the 2020-2021 Annual
Action Plan would be available to the public for review and comment from July 8, 2020 to
July 14, 2020;
WHEREAS, a telephonic hearing was held by the City Council on July 14, 2020, due
to the Declaration of a State of Emergency and Proclamation of Local Emergency related to
COVID-19, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the public hearing was given in
accordance with the Ralph M. Brown Act and the Waivers of CPD Grant Program
Requirements to Prevent the Spread of COVID-19 and Mitigate Economic Impacts approved
by HUD. Evidence, both written and oral, was presented to, and considered by the City
Council at this public hearing; and
WHEREAS, the City Council desires to amend the 2020-2021 Annual Action Plan and
approve the substantial amendment to the 2020-2021 Annual Action Plan.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
Section 1: The City Council hereby approves the substantial amendment to the 2020-
2021 Annual Action Plan as provided in Exhibit A, attached hereto and incorporated herein by
reference.
Section 2: The City Council does hereby authorize: (a) the City Manager, or his/her
designee, to: 1) submit the 2020-2021 Annual Action Plan as amended to HUD; 2) execute the
CDBG-CV Grant Agreement and all related documents on behalf of the City; and 3) execute
all subrecipient agreements with the organizations receiving allocations of CDBG and CDBG-
CV funds in the 2020-2021 Annual Action Plan as amended; and (b) the Community
Development Director, or his/her designee to be the official representative of the City to
administer the program and submit required environmental documentation to HUD for CDBG
projects.
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Resolution No. 2020 -
Page 3 of 3
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 5: The City Council finds the approval of the substantial amendment to the
2020-2021 Annual Action Plan is exempt under 24 CFR Part 58, Section 58.34 of the
National Environment Policy Act of 1969 ("NEPA"), as amended.
Section 6: The City Council finds the adoption of this resolution and the approval of
the substantial amendment to the 2020.2021 Annual Action Plan is not subject to the
California Environmental Quality Act ("CEQK) pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of
the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 7: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 14th day of July, 2020.
Will O'Neill
Mayor
ATTEST:
Leilani 1. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
A ,— C— H
Aaron C. Harp
City Attorney
Attachment: Exhibit A - Substantial Amendment to the 2020-2021 Annual Action Plan
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EXHIBIT A
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NEWPORT BEACH
CITY COUNCIL
Will O'Neill
Mayor
Brad Avery
Mayor Pro Tem
Joy Brenner
Council Member
Diane B. Dixon
Council Member
Duffy Duffield
Council Member
Jeff Herdman
Council Member
Kevin Muldoon
Council Member
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TABLE OF CONTENTS
ExecutiveSummary....................................................................................1
Background..............................................................................................1
Sources............................................................................................. 1
Uses of Community Development Block Grant (CDBG-CV).....................1
AP -15 Expected Resources........................................................................2
MatchingRequirements...........................................................................2
AP -20 Goals and Objectives.......................................................................3
AP -35 Projects and activities......................................................................4
AP -90 Program Specific Requirements.......................................................6
Appendices
Appendix ACitizen Participation
Appendix BSF-424, SF -424D, Certifications
CARES Act Substantial Amendment to the 2020-2021 Action Plan
14-16
EXECUTIVE SUMMARY
Background
Congress passed the Coronavirus Aid, Relief, and Economic Security
(CARES) Act and the President signed it on March 27, 2020 authorizing $2.2
trillion in a variety of stimulus measures to prevent, prepare for, and respond
to the COVID-19 pandemic. The law included $2 billion for Community
Development Block Grant (CDBG) entitlement communities. The City of
Newport Beach receives regular formula -based entitlement grants of CDBG
funds through the United States Department of Housing and Urban
Development (HUD) each year.
Sources
The City of Newport Beach will receive the following grant under the CARES
Act:
CDBG-CV $219,324
These funds are separate and distinct from the City's regular CDBG funds.
As of June 15, 2020, HUD continues to release guidance for these programs
containing modified program requirements. Subject to the CARES Act and
emerging policy from HUD, the City Council is responsible for determining
how CDBG-CV funds will be used to prevent, prepare and respond to the
COVID-19 virus. This draft Action Plan Amendment describes the approved
investment of CDBG-CV funds.
Uses of Community Development Block Grant (CDBG-CV)
Small Business Relief Grants $175,460
CDBG-CV Program Administration $43,864
Updated Uses of Regular Community Development Block Grant
(CDBG)
The original 2020-2021 Action Plan adopted on May 12, 2020 included a
generalized activity for Economic Development Assistance using $250,371
of CDBG funds. Those funds will now be used for the Small Business Relief
Grants project described in this Action Plan Amendment with specific
numerical goals for the combined use of the regular CDBG resource and the
CDBG-CV resource.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 1
14-17
AP -15 EXPECTED RESOURCES
The CARES Act allocations from HUD include $219,324 of CDBG-CV funds.
The period of performance for these grants under the law is from March 27,
2020 to September 30, 2022. Additionally, $250,371 of funding allocated to
Economic Development Assistance in the original 2020-2021 Action Plan will
be used in conjunction with CARES Act CDBG-CV funds.
Table 1 -- Expected Resources
Program
Uses of Funds
Expected Amount Available
Narrative
Description
Allocation:
Program
Prior Year
Total:
Income:
Resources.
Economic
CARES Act
Development
allocation of
CDBG-CV
$219,324
$0
$0
$219,324
CDBG to
Administration
address
COVID-19
Matching Requirements
The Cares Act allocation of CDBG-CV funds does not require a local
matching funds contribution.
Note: Information on this page will also be used to update the 2020-2024
Consolidated Plan "SP -35 Anticipated Resources" section, adding the
CDBG-CV allocation shown in Table 1.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 2
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AP -20 GOALS AND OBJECTIVES
Table 2 — Goals and Objectives
Goal Name
Time Period
Category
Needs
Addressed
Funding
Goal Outcome
Indicator
CDBG-CV:
Businesses
Goal
Non -Housing
$175,460
Assisted:
Economic
2020-2022
Community
Economic
20 Businesses
Development
Development
Development
Regular
Assistance
CDBG:
Jobs
$250,371
Created/Retained:
16 Jobs
Description: Provide technical assistance and additional support to small
and micro businesses in the City of Newport Beach to provide job support
and fulfill economic needs of low- and moderate -income residents. Provide
one-time funding to small businesses located within the city that need
financial assistance to aid in their recovery from the temporary loss of
revenue due to the COVID-19 public health emergency.
NIA
Goal 3
CDBG-CV
2020-
Program
All
CDBG-CV:
Program
2022
Administration
$43,864
Administration
Subject to the CARES Act and emerging policy from HUD, including
program regulations and waivers, CDBG-CV funds will be used to pay the
City's costs to plan for the use of CDBG-CV funds, process all required
grant administration documents, forms, agreements, and payments, and to
monitor and report to HUD concerning implementation of activities in
compliance with federal regulations.
Note: Information from this page will also be used to update the 2020-2024
Consolidated Plan "SP -45 Strategic Plan Goals" section, adding CDBG-CV
funds to the Economic Development Assistance and Program Administration
goals.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 3
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AP -35 PROJECTS AND ACTIVITIES
To address the goals and objectives identified in Section AP -20, the City of
Newport Beach will invest these funds for the project activities shown in the
table below.
Table 3 — CDBG-CV Project and Activities
1
Project Name
Small Business Relief Grants
Target Area
Citywide
Goals Supported
Economic Development Assistance
Needs Addressed
Economic Development
Funding
CDBG-CV: $175,460
Regular CDBG: $250,371
Description
Subject to the CARES Act and emerging policy from HUD, including
program regulations and waivers, CDBG-CV funds will be used for the
Small Business Relief Grant Program that provides one-time funding to
small businesses located within the city that need financial assistance
to aid in their recovery from the temporary loss of revenue due to the
COVID-19 public health emergency. To be eligible to apply for the
Small Business Relief Grant Program, a business must demonstrate
the need for financial support due to the temporary loss of revenue
resulting from the impact of the COVID-19 pandemic and the Stay at
Home order in one of the following ways:
• The business was deemed non-essential and was forced to shut
down by the state or local government, Sales from the business
are down more than 25 percent compared to the previous three
months (Prior to February 15, 2020) or a comparable 3 -month
period in 2019;
• The business has had to lay off at least one of its employees
(full- or part-time employee); or
• One or more of the employees in the business have contracted
COV[D-19, while at work.
For more information, please visit:
htt s:/Iwww.new ortbeachca. ovl overnment/de artments/cit -
managerlsmall-business-program-grant
Target Date
9/30/2022
Accomplishments
Approximately 20 businesses will be assisted, 16 Jobs
Created/Retained
Location
Citywide
Planned Activities
Small Business Relief Grants (20 Businesses Assisted, 16 Jobs
Created/Retained)
CARES Act Substantial Amendment to the 2020-2021 Action Plan 4
14-20
2
Project Name
CDBG-CV Program Administration
Target Area
Citywide
Goals Supported
Program Administration, Economic Development Assistance
Needs Addressed
Economic Development
Funding
CDBG-CV: $43,864
Description
Subject to the CARES Act and emerging policy from HUD, including
program regulations and waivers, CDBG-CV funds will be used to pay
the City's costs to plan for the use of CDBG-CV funds, process all
required grant administration documents, forms, agreements, and
payments, and to monitor and report to HUD concerning
implementation of activities in compliance with federal regulations.
Target Date
9/30/2022
Estimate the
NIA — Program Administration
number and type
of families that
will benefit
Location
Citywide
Planned Activities
CDBG-CV Program Administration $43,864
CARES Act Substantial Amendment to the 2020-2021 Action Plan
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AP -90 PROGRAM SPECIFIC REQUIREMENTS
In the implementation of program activities under the CDBG-CV Action Plan
will follow all HUD regulations and some or all of the waivers made available
by HUD concerning compliance matters such as program income, forms of
investment, and overall low- and moderate -income benefit (if applicable).
Community Development Block Grant -CV Program (CDBG-CV)
The following tables address HUD regulatory requirements at 24 CFR
92.220(1)(1) concerning program income and CDBG-CV low- and moderate -
income benefit.
Table 4 — Program Income
1. The total amount of program income that will have been received
0%
before the start of the next program year and that has not yet been
reprogrammed
0
2. The amount of proceeds from section 108 loan guarantees that will be
used during the year to address the priority needs and specific objectives
identified in the grantee's strategic plan.
0
3. The amount of surplus funds from urban renewal settlements
0
4. The amount of any grant funds returned to the line of credit for which
the planned use has not been included in a prior statement or plan
0
5. The amount of income from float -funded activities
0
Total Program Income:
0
Table 5 — Low- and Moderate -Income Benefit
1. The amount of urgent need activities*
0%
2. The estimated percentage of CDBG funds that will be used for
activities that benefit persons of low- and moderate -income. Overall
Benefit - A consecutive period of one, two or three years may be used to
determine that a minimum overall benefit of 70% of CDBG funds is used
to benefit persons of low- and moderate -income. Specify the years
covered that include this Annual Action Plan.
100%
Note: I ne amount for urgent Need activities may change depending on waivers
issued by HUD subsequent to this Action Plan amendment.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 6
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Summary of Public Comments
To be inserted subsequent to the public review and comment period.
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