The city of Shasta Lake initially brought the issue to the attention of the League after the city was deemed ineligible for CDBG funding. The League then also discovered that other jurisdictions were equally frustrated with the HCD ruling, citing confusion stemming from newly implemented regulations for the 2012 CDBG application due on April 6.
In response to member concerns, the League intervened on behalf of the jurisdictions whose applications were deemed ineligible and drafted a letter requesting that HCD re-review the applications given the new regulatory requirements. The letter was signed by every Assembly member and senator whose jurisdictions were deemed ineligible.
Less than two days after sending the letter, HCD responded favorably by announcing it would re-review the applications where jurisdictions sent the OMB A-133 to the Federal Audit Clearinghouse prior to the deadline.
The League would like to thank the city of Shasta Lake for bringing this issue to our attention so that we could facilitate a positive outcome for our members. Without this information the League would have been unaware of the disqualifications and League members would have lost critical grant funds.
The League would also like to thank HCD Director Linn Warren for listening to the concerns of our cities and for a prompt response.