The only problem I really see here is that a government is involved at all. Private donation; eh, people can do what they want with their money. Getting a city involved in handing out free money? That I have a problem with.
Also, $500 a month to 100 families for a year is $600,000. Looks like the city is going to skim $400,000 off the grant for themselves.
And lastly, gotta print this article out and go hand it out to some of the bums in the area so they know they can get free money in Stockton if they hurry on down there.
Add for clarity: all the money comes from a private grant of $1,000,000. So apparently the 400k is for administrate fees ...