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Noelle Tolentino - NTolentino@fremont.gov (Send Email)

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APPLICANT ELIGIBILITY: Grants will be awarded to private or public entities such as county departments, organizations that qualify for tax exemption under Section 501(c)(3) of the Internal Revenue Code, or secular service programs or ministries that are covered by the insurance of a tax-exempt non-profit religious organization.

AUDIT AND INTERNAL CONTROL QUESTIONNAIRE REQUIREMENT: Agencies that receive City funds totaling $25,000 or more must submit an audit to the City on a yearly basis. IRS rules also require any agency receiving more than $750,000 in Federal funds from any combination of sources to submit to special audit requirements. If additional expenses are incurred related to audit requirements, the contractor may charge some or all of those expenses to the grant. Agencies that receive less than $25,000 in funding from the City of Fremont are required to submit an Internal Control Questionnaire detailing their financial accountability systems on an annual basis. In cases where an agency receives less than $25,000 in City funding but must submit to audit requirements from another funding source, an audit will be accepted in place of the Internal Control Questionnaire.

INSURANCE REQUIREMENTS: Funded agencies must submit current Certificates of General Liability Insurance coverage in an amount not less than $2,000,000 general aggregate and $1,000,000 per occurrence for general liability, bodily injury, personal injury, and property damage, with the City of Fremont named as an additional insured. Agencies must also submit automobile insurance (single limit of $1,000,000) and current Worker's Compensation insurance. Agencies providing professional, legal, or counseling services as part of their service delivery must also submit proof of Professional Liability Insurance.

REPORTING REQUIREMENTS: The Successful agency will be required to submit client and service information upon project completion, including, but not limited to the following: 1. Number of Fremont clients served 2. Detailed client racial and ethnic information 3. Detailed client household income information based on HUD income levels of 30%, 50%,, and 80% Annual Median Income. 4. Client female head of household information

CONTRACT DATES: Subject to City Council approval, FY 26/27 capital (bricks and mortar) contracts will be funded beginning July 1, 2026. Contracts will have a reasonable end date (not to exceed 24 months after the date of contract execution) agreed upon by the City and the successful applicant.

CONTRACT MONITORING: Fully executed contracts may be monitored by the City of Fremont to ensure compliance. Funded agencies may be required to submit fiscal and program reports. Agencies will also be required to develop and implement performance and evaluation measures consistent with future HUD mandates.

For FY 2026/2027, the following factors, divided into five major categories, may be used to evaluate proposals for the use of CDBG funds. Descriptions of each factor are provided:

1. Ability to Address Critical Community Development and Housing Needs Benefit: This factor includes both the definition of the need the proposal seeks to address and the ability of the applicant to measurably meet that need. The amount of benefit delivered is very important. This includes both the total (unduplicated) number of Fremont residents to be served and the seriousness of the need, which is to be met. Proposals that address more critical needs for lower-income people should be given high consideration. Proposals addressing the critical needs of very low-income households and persons should be given greater consideration over proposals serving primarily moderate-income households. In addition, greater consideration should be given to proposals that can document specific results, rather than general activities that can only indirectly be shown to meet housing and community development needs. Targeting to Disadvantaged and Low Income People Fremont’s CDBG funds should be used to provide benefits for low-income persons in Fremont. Households served must be primarily lower-income; at least 51% of all beneficiaries must have low or moderate incomes of less than 80% of the area median income. In addition, the applicant may have reasons and methods for targeting subsections of this population, such as single-parent households or the disabled. The reasons, methods, and ability of the proposed project to target the appropriate population are evaluated through this factor. Ability of Project to Address Critical Needs. The specific ways in which the proposed improvements and/or services will successfully address identified critical needs should be clear and unambiguous. The extent to which the proposal will address the critical needs should also be considered. This includes the number of people to be assisted relative to the number of those in need of assistance.

2. Program Design Overall Design: How well does the whole project/proposal hang together? Is the agency well-suited to undertake this project? Is the proposal well thought out and likely to succeed? Cost Effectiveness of Proposed Project - How much bang for the buck will this project provide? How many will benefit relative to the cost per person to be served in comparison to other projects and other ways to address this need? Ability to Evaluate Success of Project - Can the proposed results be measured to evaluate how well the project succeeded in meeting the identified need for the project? It is important to know how the success of the proposed project will be measured. Leverage of City’s CDBG Funds The ability of applicants to match the requested Fremont CDBG funds with funds contributed from other sources should enhance the application and result in a more competitive proposal. This does not include funding received by the organization for other activities of the organization. It is also important to consider the likelihood of the project needing fewer or no additional funds from the City as a result of the funding. Proportionate Service to Fremont Residents. Whether the project or service is located in Fremont or elsewhere in southern Alameda County, the amount of funding requested from Fremont should represent the proportionate amount of service provided by the project to Fremont residents. Feasibility of Project to Succeed - How feasible is this project? Just because something is needed or a good idea does not mean it will happen. To ensure the expeditious use of CDBG funds, approved projects must be feasible and be completed in a timely manner. Conditions to require certain actions to take place based on a reasonable schedule should be used to ensure projects move forward in a timely manner or to allow funds to be reprogrammed for other eligible activities.

3. Management Capacity Organizational Strength: This pertains to the demonstrated ability of an agency to undertake and successfully complete the type of project proposed. How long has the organization been in operation? Is it a fiscally and programmatically stable organization? What is its track record? Have the managers of the proposed project successfully completed a project such as the one being submitted? If not, can the organization demonstrate it has the ability to do the proposed project? Administrative Cost. In the case of direct improvement/service projects, the administrative costs are the salary and overhead of supervising and administering the project. The appropriate amount of administrative cost will vary with the type of service provided, but the cost should be reasonable in proportion to the direct cost of the service or improvements. Fiscal Capacity - This criterion refers to the organization’s ability to properly administer and account for funds. It includes the entity’s internal control procedures and accuracy of fiscal records (as shown by audits and monitoring reports), and its ability to request reimbursements in a timely manner and with a minimum of errors. Agencies receiving more than $700,000 in federal funds must secure an agency-wide audit in conformance with OMB requirements. Record-Keeping and Reporting Capacity Agencies must agree to and have the ability to maintain accurate and complete records, and to prepare clear, timely reports on project progress. Documentation of income to demonstrate that program/project participants have primarily low and moderate incomes and meet other service objectives is critical to determine eligibility for CDBG funding and to evaluate performance.

4. Performance Capacity Capacity to Operate and Maintain the Facility: Applicants’ plans to develop and maintain a realistic capital reserve fund to pay for ongoing operating and maintenance costs for facilities to be developed, acquired, or improved with CDBG funds should be considered. For projects with an ongoing mortgage commitment, the ability of the agency to meet its debt service costs should be considered. The agency’s service costs should also be considered. The agency’s ability and likelihood to secure adequate funding to provide the services to be delivered in a proposed facility should also be considered. It may be possible for an agency to document this through their track record or by showing how the proposed project will decrease annual operating costs so the cost savings can be used for future maintenance and operation expenses. Capacity to Undertake the Proposed Project? What is the organization’s ability to obtain and properly administer all of the necessary funds to undertake and complete the proposed project? Do they propose to use open and competitive procurement processes to secure bids and meet other federal procurement and construction requirements? Do they have the administrative and staff capacity to manage the project? Can the agency handle the capital development or acquisition process itself? Has it managed physical development or other capital projects in the past? How much technical assistance will be needed from the City to ensure the project is completed and meets federal requirements? Past Performance The criterion refers to the agency’s record of achievement of projects and objectives in past years. Monitoring reports can provide this information for previously funded agencies. Completeness, Accuracy, and Quality of Proposal. This includes an overall evaluation of the proposal itself, as evidence of the agency’s understanding of the project’s purpose and objectives, knowledge of the field, and ability to prepare concise reports. It also includes the completeness, accuracy, and quality of an applicant’s response to questions regarding the proposal.

5. Other factors Quality and Completeness of Proposed Budget: The accuracy of the budget reflects both the agency’s understanding of the methods needed to deliver the proposed project and its ability to prepare accurate fiscal reports. Spin-off Benefits: This includes all ancillary benefits provided by a proposal. For example, a proposal to build a new center for the homeless may also, by design, enable a service to be expanded and/or improved, resulting in jobs and/or job training to help low-income residents become more self-sufficient. These benefits should be measurable and a logical outcome of the project. Increase in Program Income: Will it result in CDBG program income for the City to use on other eligible CDBG projects? Or, will the proposed project allow the agency to become more self-sufficient? Will it increase income or reduce costs? Consolidation of Services: Consolidation of previously separate services and/or the elimination of duplication of services should be encouraged. This may take the form of services previously provided by separate agencies now provided by one, or a more comprehensive approach to a variety of related services. Innovativeness of Projects with new methods, new to the geographic area or new to the area of service, that show promise of improved benefits to residents should be encouraged. Also, seed projects are considered innovative. These are projects that request a one-time grant in order to get started without further City help. Ability to Demonstrate Good Faith Effort in Meeting Section 3 Requirements. For construction/ rehabilitation project proposals, does the project sponsor demonstrate willingness and ability to sufficiently demonstrate good faith efforts in meeting Section 3 Requirements? Partnerships with Other Agencies and the Private Sector An agency may propose as part of its project a close, formal, working relationship with a private or public entity, in order to better achieve its objectives. For example, a childcare provider may agree to give priority for admittance to the children of single parents enrolled in another agency’s job-training program. Cooperation in funding a project by multiple local jurisdictions should also be recognized as an advantage in meeting needs that extend beyond one service area.