For several years the city has been ineligible for annual,
federal block grants due to misuse of funds and a lack of financial
reporting. City Councilman Doug Emerson has confirmed the City of
Hollister has not been eligible to apply for Community Development
Block Grants in recent years, but some officials from the city are
working to change that.
For several years the city has been ineligible for annual, federal block grants due to misuse of funds and a lack of financial reporting.
City Councilman Doug Emerson has confirmed the City of Hollister has not been eligible to apply for Community Development Block Grants in recent years, but some officials from the city are working to change that.
“The city has not been eligible for CDBG because of old grants in the 80s and 90s,” Emerson said. “Financial reports were not turned in.”
He said in 2005 when he joined the council, the city had $1 million in a fund from repayment of CDBG loans that had been given out as economic development funding. When working with state employees from the Housing and Community Development office, the city staff was told it would have to expend the money through grants to support the same activities for which CDBG grants are intended.
Emerson was unclear when the city became ineligible for the grants, and City Manager Clint Quilter could not be reached before publication to confirm the time frame and the dollar amounts involved with the grant losses.
Emerson said in recent years the city gave out $125,000 toward affordable housing projects and $680,000 in grants to local nonprofits. The city also needs to file financial reports for the last five years.
City manager Clint Quilter, Community Services Director Bill Avera, and Emerson have been meeting with staff members from HCD. And Emerson said they are anticipating an agreement from the state that in the coming weeks will include the final steps the city needs to take to be eligible for CDBG grants again.
“If we get the city out of that status and work closely with the county to have a concerted effort with (the applications), we could put out great applications,” Emerson said. “Between the two jurisdictions, we would make sure we are complementing each other and not competing.”
Arreola said he has been in talks with Emerson about how to proceed if the city becomes eligible for block grants before the next application cycle. Each entity would be able to apply for a grant in each of the three categories, for up to six grant applications. Arreola also stressed that the city and county would need to work together to make sure they are not competing with each other.
“If they are able to apply, we have two eligible jurisdictions,” he said. “We would need to have some dialogue.”
For a story on how San Benito County received the lowest per capita direct federal funding in the state, go here. Look for more in the Pinnacle on Friday.
