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Amount of grant funds for nonprofit groups is uncertain

OCEANSIDE — A decision on how much to allot nonprofit groups in Community Development Block Grant funds was postponed on March 16, until the city has a better idea of the amount of Housing and Urban Development funds it will receive.
The plan is that all programs that were awarded Community Development Block Grant, or CDBG, funds last year will receive funds again this year in order to help them provide low-income housing, community revitalization and community services. The amount of funding, however, will be less.
John Lundblad, management analyst, said there is word from the U.S. president, Senate and Congress that Housing and Urban Development, or HUD, funds may be cut 8 percent to 61 percent.
“We’re either going to get 8 percent, 10 percent or 60 percent less or somewhere in between,” Lundblad said. “They agree we’re in a bind.”
The cut in HUD funds means program CDBG funds will be reduced by a minimum of 10 percent.
CDBG funds will probably be eliminated for the S.U.N. project, which revitalizes neighborhoods with fresh coats of paint and new fencing.
Funds will also be stopped for single-family rehabilitation loans, mobile home rehabilitation loans and nonprofit organizations’ capital improvement projects.
Even without knowing the amount of funding the city must draft a statement on how funds will be used in March and an action plan by April 1.
“We’re going to write a plan with a lot of blank spaces and HUD is OK with that,” Lundblad said.
Although funding uncertainties loom, representatives from Ivey Ranch Equestrian Center and Project Reach after-school program thanked City Council for CDBG funds awarded in previous years.
Fifteen community service groups and five housing programs that serve children, teens, seniors and low-income families receive CDBG funds.
The hearing on CDBG funds will be continued May 4.