ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to APPROVE the 2015 ANNUAL ACTION PLAN for Submittal to the Department of Housing and Urban Development (HUD) with a Total Grant Allocation of $2,176,499.
Body
BACKGROUND:
As a recipient of funds from the Department of Housing and Urban Development (HUD), the City is required to develop an Annual Action Plan that provides a summary of the activities and resources that will be used to address goals of the City's 2014-2018 Consolidated Plan.
The development of the Plan was the result of an extensive citizen participation and consultation process involving city residents, commissions, neighborhood associations, community agencies, City staff, and others interested in housing, non-housing, and community development needs of the City. The City held advertised public hearings, community meetings, and attended various agency meetings including City Commissions, the Peoria Housing Authority, and the Heart of Illinois Homeless Continuum of Care.
On January 27, 2015, City Council approved a draft budget based on the anticipated allocation from HUD for Community Development Block Grant (CDBG) funds, HOME Investment Partnership Grant funds, and Emergency Solutions Grant (ESG) funds. Upon Council approval of the proposed 2015 budget, staff began drafting the 2015 Annual Action Plan.
In February 2015, HUD announced the City's 2015 grant allocation with approximately a 2% decrease in CDBG funding, a 5% decrease in HOME funding, and an 8% increase in ESG funding. The final 2015 Annual Action Plan cannot be submitted to HUD until the City's 2015 annual grant allocations are announced.
Entitlement Grant |
2015 Award Amount |
Difference between 2014 and 2015 Award Amount |
CDBG |
$1,555,133 |
Decrease of $ 54,768 |
HOME |
$ 480,361 |
Increase of $ 17,397 |
ESG |
$ 141,005 |
Increase of $ 25,019 |
After analyzing the 2015 grant award amounts, City staff adjusted the budget for the Plan. Due to the reduction of funding, proposed funding amounts for CDBG the following activities' funding were decreased - Demolitions, Housing Rehab Programs, and Public Service. CDBG funding for the Economic Development Program for 2015 was removed due to the current balance of $413,860 still available from previous years. In addition, the ADA Ramp Program ($200,000 in CDBG funding) was returned to the Plan due to community need and the continued support for the project by the City's Public Works Department.
With these changes, the 2015 Annual Action Plan was published for a 30-day public comment period beginning February 23, 2015. The Plan was available for review at the Peoria Public Library Downtown Branch, the Peoria Housing Authority, the City Clerk's Office, and the City's Community Development Department. A copy of the Plan was also available on the City's website. To comply with HUD regulations, a variety of state, local, and nonprofit organizations were contacted to solicit comments. Two public hearings on the Plan were also held during the 30-day public comment period.
The 2015 Annual Action Plan is due to HUD on or before April 11, 2015. Upon City Council approval, staff will submit the Plan to HUD. HUD will review the plan to ensure regulatory compliance and then process the 2015 grant award agreements. Once the agreements are issued and signed by both HUD and the City, the 2015 grant funds will be available for programming. It is anticipated that funding will be available in August 2015.
FINANCIAL IMPACT: The budget of the 2015 Annual Action Plan of $2,176,499 is as follows:
CDBG Program |
Budget |
ADA Ramps |
$200,000 |
Housing Rehab Programs |
$218,051 |
Demolition Program |
$250,000 |
Public Service Set Aside (15% cap) |
$233,269 |
Housing Rehab Project Delivery |
$106,574 |
Code Enforcement Project Delivery |
$256,200 |
Planning and Administration |
$291,039 |
Total |
$1,555,133 |
HOME ProgramBudget |
|
Focus Housing Leverage |
$142,361 |
CHDO Set Aside (minimum 15%) |
$300,000 |
Administration |
$ 38,000 |
Total |
$480,361 |
ESG ProgramBudget |
|
Emergency Solutions Grant Program |
$132,005 |
Administration |
$ 9,000 |
Total |
$141,005 |
Once funding becomes available, a request for adoption of an ordinance amending the City's budget for fiscal year 2015 will be sent to City Council for approval.
NEIGHBORHOOD CONCERNS: The development of the 2015 Annual Action 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 housing, non-housing, and community development needs of the City.
IMPACT IF APPROVED: The City of Peoria will be in compliance with HUD regulations and will be eligible to receive the 2015 grant allocation.
IMPACT IF DENIED: The City of Peoria will not be in compliance with HUD regulations and will not be eligible to receive the 2015 grant allocation.
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: NA
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