ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director with a Request for the Following:
A. APPROVE a Substantial AMENDMENT to the 2020-2024 CONSOLIDATED PLAN for Submittal to the Department of Housing and Urban Development (HUD);
B. APPROVE the REALLOCATION of Prior Year CDBG Funds; and
C. ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET Relating to the Community Development Block Grant (CDBG) Fund to Recognize the Receipt of Additional Grant Funds from the Department of Housing and Urban Development to Prevent, Prepare for, or Respond to COVID-19, in the Amount of $795,903.00 and the Corresponding Expenditures; Reduce the 2020 CDBG Grant Funding, in the Amount of $314.00, and Corresponding Expenditures and to Reduce the Home Fund to Recognize the Decrease in the Home Investment Partnership Grant, in the Amount of $105.00 and the Corresponding Reduction in Expenditures.
Body
BACKGROUND:
A. Approve the Substantial Amendment to the 2020-2024 HUD Consolidated Plan
The City of Peoria is receiving additional Emergency Solutions Grant (ESG) funds in the amount of $795,903 from the Department of Housing and Urban Development (HUD) to prevent, prepare for, or respond to COVID-19.
To receive these funds, the City must submit a substantial amendment to the 2020-2024 HUD Consolidated Plan and include these funds as other federal resources. All these federal funds must be spent on eligible activities according to each funding source. Emergency Solutions Grant (ESG) funds are to assist individuals experiencing homelessness within the City of Peoria.
In addition, the City is returning prior year funds from the unspent COVID-19 response programs back to public infrastructure projects as outlined in section B.
The amendment also includes an amended Citizen Participation plan. Due to COVID-19, HUD allowed for the reduction of the public comment period from 30 days to 5 days. The amended plan reflects this change in the waivers section of the plan and the continuing of these waivers into 2021.
Once the plan is approved by City Council, it will be submitted to HUD. HUD is attempting to expedite the processing of amendments and grant agreements, but the timing of the City receiving this funding is still uncertain. Upon approval of the plan, City staff will move forward with the process for these programs, but staff will not be able to disburse any funds until the amendment is approved by HUD.
There is a second item before the City Council that outlines the homeless service providers receiving funding through the additional ESG funds.
Finally, due to a formula error, HUD announced a slight decrease in the City’s 2020 CDBG and HOME Investment Partnership grant funds. This formula error results in a decrease of $314 in CDBG and a decrease of $105 in HOME. The budgets in the substantial amendment reflect these changes by reducing the CDBG rehabilitation budget and the HOME competitive grant budget.
B. Reallocation of PRIOR YEAR Funds
To achieve the target amount of funding for each COVID-19 program, prior year funds were reallocated to the small business assistance program. Through this program, staff assisted 53 small businesses with over $445,000 in CDBG funding. The remaining funds that were reallocated to small businesses and some additional extra funds are requested to be returned to public infrastructure and public facility projects.
The following CDBG funds will be returned to the Nebraska Infrastructure project to provide funding for additional sidewalks and street lighting as part of the scheduled project. Reallocated funds include unspent funds from the Health Department Partnership program and the COVID small business program.
|
Project # |
Project Name |
Unspent Funds |
|
|
|
|
|
18HP00 |
Health Department Partnership |
$ 2,101.84 |
|
19HP00 |
Health Department Partnership |
$ 23,269.08 |
|
18B00 |
Small Business |
$ 17,529.34 |
|
19B00 |
Small Business |
$207,099.74 |
|
|
Total |
$250,000.00 |
The following CDBG funds will be returned to projects on the Southside, specifically to the building of the new fire station # 4 on Western. Although building and maintenance for buildings of the general conduct of government such as City Hall are not allowed by CDBG, fire stations are allowed under CDBG regulations as a public facility. Reallocated funds include unspent funds from the COVID small business program, the 2020 public service program, and unallocated funds for the competitive grant program targeted for the South Side of Peoria.
|
Project # |
Project Name |
Unspent Funds |
|
|
|
|
|
19B00 |
Small Business |
$150,700.60 |
|
20B00 |
Small Business |
$ 12,000.00 |
|
20P00 |
Public Service |
$ 2,315.52 |
|
20G00 |
Competitive Grant |
$ 98,436.00 |
|
|
Total |
$263,452.12 |
It is important to note that all small businesses that applied for the Community Development Department Small Business Grant Program were awarded funds if they met eligible criteria. The funds for the small business program were originally allocated to different eligible projects. The City of Peoria was awarded other grant dollars for small business assistance which more details are available in a different Council Communication about that program. Due to different funding being available, it is appropriate to reallocate the remaining funds back into the original projects in parts of our community that would benefit from additional investment.
C. Adopt an Ordinance Amending the Budget of the City of Peoria.
The attached ordinance reflects the additional grant funds received and the corresponding expenditures in the amount of $795,903.
CDBG 2020 grant decreased by $315 to $1,848,472 and HOME decreased by $105 to $673,942
FINANCIAL IMPACT: Increase in ESG grant funding in the amount of $795,903 and corresponding expenditures; reduction in CDBG grant funding in the amount of $314 and corresponding expenditures and a reduction in HOME Investment Partnership grant funding in the amount of $105 and corresponding expenditures.
NEIGHBORHOOD CONCERNS: The development of the substantial amendment followed HUD-issued guidance for a 5-day public comment period. A summary of the comments received is attached.
IMPACT IF APPROVED: The City of Peoria would comply with HUD regulations and will be eligible to receive and expend HUD funds as outlined
IMPACT IF DENIED: The City of Peoria would not be in compliance with HUD regulations and would not be eligible to receive HUD funding.
ALTERNATIVES: None at this time.
EEO CERTIFICATION NUMBER: All sub-recipients and contractors will be required to maintain an active EEO certification number
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Beautiful Peoria
2. Financially Sound City
3. Safe Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
3. Choose an item.
DEPARTMENT: Community Development