ACTION REQUESTED:
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Communication from the City Manager and Community Development Director with a Request to Approve the Revised 2014-2018 HUD CONSOLIDATED PLAN and 2014 ANNUAL ACTION PLAN for Submittal to the Department of Housing and Urban Development (HUD), with a Total 2014 Grant Request of $2,215,827.00.
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BACKGROUND: As a recipient of HUD funds (Community Development Block Grant, HOME Investment Partnership and Emergency Solutions Grant), the City of Peoria is required to develop a multi-year Consolidated Plan and corresponding Annual Action Plan that indicates the priorities for the investment of these funds. The purpose of the Plan is to develop viable communities by creating decent housing, a suitable living environment and expanded economic opportunities for primarily low to moderate income individuals, households and neighborhoods.
On October 22, 2013, City Council approved the 2014-2018 Consolidated Plan and 2014 Annual Action Plan using estimated budget allocation amounts. Historically, HUD has allowed grantees to submit their Consolidated Plan and Annual Action Plan using anticipatory grant amounts from previous year grant awards. In December 2013, HUD issued national guidance for all grantees to delay sending their 2014 Annual Action Plan, and applicable Consolidated Plan, until final 2014 grant allocation amounts were announced by HUD. Upon receipt of this guidance, the City had already submitted the Consolidated Plan and Annual Action Plan (regulatory deadline for plan submission was November 2013). Therefore, following the new guidance, HUD denied the City's Consolidated Plan and Annual Action Plan since the 2014 final grant allocation amounts were not included.
In March 2014, HUD released the 2014 grant allocation amounts; see below for the applicable grant awards for the City:
Entitlement Grant |
2014 Award |
2014 vs. 2013 Grant Awards |
CDBG |
$1,581,903 |
Decrease of approx. 2% (-$27,998) |
HOME |
$503,138 |
Increase of approx. 8.5% (+$40,174) |
ESG |
$130,786 |
Increase of approx. 12.5% (+$14,800) |
Using the 2014 grant allocation, City staff revised the 2014-2018 Consolidated Plan and 2014 Annual Action Plan submitted in November 2013. A copy of the revised 2014-2018 Consolidated Plan and 2014 Annual Action Plan is available for review at the City Clerk's Office.
Given the opportunity to revise the 2014-2018 Consolidated Plan and 2014 Annual Action Plan, City staff reviewed the existing plan content and the information gathered through the citizen participation process. The development of the Plan was the result of extensive citizen participation and consultation process involving city residents, commissions, neighborhood associations, community agencies, City staff and others interested in the housing, non-housing and community development needs in the City of Peoria. The City held advertised public hearings, community meetings and attended various City Commissions who included a discussion item on their agenda regarding Plan priorities. City staff also met with the Peoria Housing Authority and consulted with the Heart of Illinois Homeless Continuum of Care in the development of the Plan. The draft plan was available for a 30 day public comment period and a summary of the draft plan was mailed to adjoining local governments, non-for profits and other entities for comment.
After analyzing the 2014 grant awards and the current draft form of the Plan, City staff made two revisions to the 2014 Annual Action Plan: 1) Include the allocation of approx. 8% ($38,000) of HOME funds for administration of the grant and 2) eliminate the Emergency Repair Program funded with CDBG (Program funds of $50,000). These revisions were made based upon: 1) the review of staff costs and time allocation for the administration of the HOME grant, 2) Slight decrease in CDBG funding and the increase in HOME funding, and 3) the remaining balance ($59,817) for the existing Emergency Repair Program. Neither one of these revisions resulted in a substantial amendment to the Plan which would trigger the provisions in the citizen participation process.
Upon Council approval, staff will send the revised Consolidated Plan and Annual Action Plan to HUD. HUD will review the Plan to ensure regulatory compliance and then process the 2014 grant awards agreements. Once the agreements are issued and signed by both HUD and the City, the 2014 grant funds will be available for programming. It is anticipated that funds would be available no later than July.
FINANCIAL IMPACT: The receipt of approximately $2.2 million annually over the next five years. The budget of the 2014 Annual Action Plan is as follows:
CDBG Program |
Budget |
Economic Development Program |
$163,860 |
PCCHD Lead Match Program |
$50,000 |
Roof Housing Rehabilitation Program |
$230,000 |
ADA Ramp Program |
$200,000 |
Demolition Program |
$300,000 |
Public Services Set Aside |
$237,285 |
Housing Rehabilitation Delivery |
$100,372 |
Planning and Administration |
$300,386 |
TOTAL |
$1,581,903 |
HOME Program |
Budget |
Focus Area Housing Leverage Program |
$165,138 |
CHDO Set Aside |
$300,000 |
Planning and Administration |
$38,000 |
TOTAL |
$503,138 |
ESG Program |
Budget |
Program Services |
$121,786 |
Planning and Administration |
$9,000 |
TOTAL |
$130,786 |
GRAND TOTAL - $2,215,827
NEIGHBORHOOD CONCERNS: The development of the Plan was the result of extensive citizen participation and consultation process involving city residents, commissions, neighborhood associations, community agencies, City staff and others interested in the housing, non-housing and community development needs in the City of Peoria. The following comments were received during the Plan creation:
· continue the Paint Program and get good paint,
· initiate a Restoration Program to bring homes to original condition,
· continue the Roof Program,
· start a Door Pane Replacement program,
· provide for gutter and soffit replacement and foundation repair program,
· provide plumbing repairs on the interior of homes,
· create a Tree Removal Program when trees are affecting foundations and sewers
· continue the Demolition Program
· work with landlords to improve rental options and property conditions for low income persons
IMPACT IF APPROVED: The City of Peoria will be in compliance with HUD regulations and will be eligible to receive the annual grants totaling almost $2.2 million for the next 5 years to be used for low to moderate individuals, households and neighborhoods.
IMPACT IF DENIED: The City of Peoria will not be in compliance with HUD regulations and could
potentially lose annual grants totaling almost $2.2 million for the next 5 years to be used for low to moderate-income individuals, households and neighborhoods.
ALTERNATIVES: None provided.
EEO CERTIFICATION NUMBER: Not applicable
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Attractive Neighborhoods with Character: Safe and Livable
2. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
DEPARTMENT: Community Development