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 CONSOLIDATE 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 2020-2021 BIENNIAL BUDGET Relating to the CDBG Fund to Recognize Additional Funding Received from the Department of Housing and Urban Development to Prevent, Prepare for, or Respond to COVID-19 to be Used for a Small Business Assistance Program, Rental Assistance Program, Homeless Services, Public Service Funding and Administrative Cost, in the Amount of $1,622,883.00, and the Reallocation of CDBG Funds in the Small Business Assistance Program, in the Amount of $678,585.00.
Body
BACKGROUND:
A. Approval of Substantial Amendment to the 2020-2024 Consolidated Plan
As communicated to City Council on April 14 and April 28, the City of Peoria is receiving additional Community Development Block Grant (CDBG) and Emergency Solutions Grant (ESG) funds 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.
|
COVID Grant |
Award Amount |
|
CDBG-CV |
$ 1,087,562 |
|
ESG-CV |
$ 535,321 |
In addition, the City can reallocate prior year funds to the COVID response programs including the small business assistance program, rental assistance program, and additional public service funding through the substantial amendment. The attached plan relocates prior year and 2020 funds and allocates the additional COVID funds to these programs.
• Over $1 million in CDBG funds is allocated to the small business assistance program.
• $300,000 in CDBG funds is allocated for a household assistance program.
• $300,000 in CDBG funds is allocated for additional public service programs through the CDBG Public Service Advisory Commission.
• Over $480,000 in ESG funds to homeless service providers.
• The maximum amount of administrative costs will be taken on both COVID grants to fund staff time to manage these programs and subrecipients.
The amendment also includes an amended Citizen Participation plan. Due to COIVD-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.
Once the plan is approved by City Council, it will be submitted to HUD. HUD is attempting to expedite 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 launching application process for these programs, but staff will not be able to disburse any funds until the amendment is approved by HUD.
B. Reallocation of PRIOR YEAR Funds
To achieve the target amount of funding for each program, prior year funds will be reallocated. These funds are extra funds from projects that were under budget or are funds that were set aside for other projects but did not have any agreements in place. All of the following funds will be reallocated to the small business assistance program.
|
Project # |
Project Name |
Unspent Funds |
|
19P00 |
2019 Public Service |
$7,800.33 |
|
19G00 |
2019 Competitive Grant |
$350,000.00 |
|
19ADA |
Harrison Sidewalks |
$20,784.73 |
|
18I00 |
Public Improvements |
$50,000.00 |
|
18G00 |
2018 Competitive Grant |
$250,000.00 |
|
|
Total |
$678,585.06 |
B. 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 $1,622.883. In addition, the previous budgeted funds will be re-allocated to the small business assistance program.
FINANCIAL IMPACT: The City will receive additional CDBG and ESG COVID funds in the amount of $1,622,883. In addition, $678,585.06 of CDBG funds will be reallocated according to the substantial amendment.
NEIGHBORHOOD CONCERNS: The development of the substantial amendment followed HUD issued guidance for a 5-day public comment period. A summary of comments received is attached.
IMPACT IF APPROVED: The City of Peoria would be in compliance 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: The City of Peoria would not be in compliance with HUD regulations and would not be eligible to receive HUD funding.
EEO CERTIFICATION NUMBER: All subrecipients 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. Grow Peoria
3. Financially Sound City Government
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Grow employers and jobs.
3. Have an efficient government.
DEPARTMENT: Community Development