State changes community development application process, creates
funding gap of six to eight months for receipt
A change to the Community Development Block Grant application
process has some local nonprofits concerned about a gap in funding
that could drastically affect services to the most needy
residents.
State changes community development application process, creates funding gap of six to eight months for receipt
A change to the Community Development Block Grant application process has some local nonprofits concerned about a gap in funding that could drastically affect services to the most needy residents.
Community Development Block grants include federal funding given to each state to disburse to local communities for programs that focus on services for low-income residents, affordable housing and economic development. In the past San Benito County has been the recipient of $400,000 during each fiscal cycle, which has provided funding to such programs as the Homeless Shelter, the Community Food Bank, Emmaus House and some services provided through the county’s Community Services and Workforce Development office. But for the 2011-12 cycle, the state’s Housing and Community Development department has decided to change the process.
“They decided to restructure,” said Enrique Arreola, the deputy director of CSWD. “They have less staff – their workforce was reduced by 50 percent – so part of this is to create a system that is more efficient.”
Grant cycle delayed
Generally the notice of funding availability goes out to local municipalities in March and they complete the process over 60 days. The applications go to the state and contracts are awarded in December, with funding available in January. But this year, the state timeline calls for pushing back the application process to January.
“If the state releases it when they said in January, then that means funding will not be available until July or even after July,” Arreola said. “The drawback is that they are exhausting their funding and there will be a gap of six, eight, nine months, which is very devastating for a nonprofit relying on these funds.”
The board of the Homeless Coalition of San Benito County has already met to discuss how to fill the gap for next year’s shelter, since the shelter runs from November to March, before the 2011-12 funds will be available.
The Homeless Coalition has been receiving $100,000 from the CDBG for operating expenses. Doug Emerson, a coalition board member and Hollister city councilman, estimated that its annual expenses are $165,000. The coalition has other funding sources, such as grants from the Monterey Peninsula Foundation and the Community Foundation for San Benito County, as well as earnings from fundraisers such as Jazz Under the Stars and individual donations.
Permanent shelter set back
“We’ve got a reserve built up and we’ve been looking for a piece of land,” Emerson said, of a five-year plan to open a year-round shelter facility. “Yesterday at the board meeting, we decided our first responsibility is to keep the (seasonal) shelter open.”
During the last season, Cindy Parr, the executive director of the Coalition, said the staff served 68 new clients in addition to about 80 returning clients. The clients do not stay every night the shelter is open, but often come and go throughout the season, with January being the busiest month.
“We had six clients who got into permanent housing,” Parr said. “We had six clients who stayed clean while the shelter was open, but now when we visit them (since the shelter closed) they are using. Three found employment. These are baby steps.”
The goal of the Homeless Coalition is to eventually offer year-round services so that people will not end up back on the streets when the shelter closes. But with the gap, Emerson said the board is estimating they will need to dip into the reserve fund for $80,000.
“We had a five-year plan,” Emerson said, of the goal to open a permanent shelter, with the $130,000 reserve. “This sets the five-year plan back about four years unless the community really comes through.”
Emerson explained that when the block grant funds come through, they must be used for specific operating expenses so the board would not be able to replace the reserve funds with the block grant money.
Mary Anne Hughes, the executive director of the Community Food Bank of San Benito County, said the application change will set her agency back as well.
“We’ve gotten about $110,000 the last couple of years,” she said. “The last one helped with operating expenses. At the end of the period we were able to hire a second person in the warehouse – it’s supporting that and some of our expansion for other agencies.”
Pantry expansion at risk
Hughes said the Community Food Bank has a goal of establishing at least nine community pantries in San Benito County, and has been working to get equipment such as refrigerators for other agencies to help disburse food.
“We reimbursed Fishes and Loaves for a refrigerator they bought,” she said.
Hughes said the Community Food Bank has an income stream of about $600,000, which comes from the Health Trust, Community Foundation for San Benito County and the Monterey Peninsula, as well as donations and sales at Pat’s Place Thrift Shop. One-sixth of that is from the block grants.
“We try to keep it diversified so if any one thing goes we still have others,” she said. “I’m hoping the community will be able to step up a little more than they have in the last few years. It’s been a scary time so I think people have gotten more conservative about things.”
Hughes said there was a serious drop in individual and business donations of money or in-kind items in 2008-09.
“It came back a little this year and I’m hoping that trend continues,” she said.
In addition to slowing the expansion of services, Hughes said that the delay in funding will mean that the Food Bank has less money to purchase supplemental food for the bags they give out to clients.
“We don’t always get the kinds of things we want to put in bags,” Hughes said. “We will try really hard not to have that impact the nutrition and the amount that clients get.”
Arreola said that some of the grant money has been used to fund the Family Resource Center, which provides services for families that have children that have been abused, as well as for the employment assistance offered at CSWD.
“There will be a disruption,” Arreola said. “There is a direct impact to nonprofits which effects the most vulnerable in the community.”
Despite the gap in funding, Arreola said that there are some benefits to the new grant process, once it goes into effect. He said that the county will now be eligible to apply for grants in three categories instead of one so if the projects are approved the county could conceivable receive $1.2 million. The categories include public services, housing acquisition and economic development. The application process will also now be a multi-year contract so agencies will not need to reapply every year.
“On the flip side, this also means a lot more competition,” Arreola said. “The goal is to secure these funds. Our county has been successful for the last 10-plus years. Hopefully, with the partnerships we will be able to continue to be successful.”
The county has served as the lead agency for the community development block grant application process. The Community Action Board members seek applications from local nonprofits and then review them. Public hearings are held so residents can give input on the applications before the CAB selects which items, with the Board of Supervisor’s approval, to send to the state.
Arreola said the CAB is conducting a survey to find out from residents what the top needs are in the community to help when the application process starts again. It asks residents to rank needs such as job resources, access to food or addressing the homeless issue, among other concerns.
The CAB will likely start advertising for local CDBG applications in September.
Community Action Board Survey
The Community Action Board survey of community need can be found online at www.sbcjobs.org or residents can stop by the Community Services and Workforce Development office, at 1111 San Felipe Road, in Hollister.
The survey will be available for two to three months.
To donate to the coalition or find out more about the upcoming fundraiser, Jazz Under the Stars, set for July 23, call Cindy Parr at 801-9531.
To donate to the Community Food Bank, visit www.communityblockgrant.org or call 637-0340.
