ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request for the Following:
A. APPROVE the 2017 ANNUAL ACTION PLAN for Submittal to the Department of Housing and Urban Development (HUD), with a Total 2017 Grant Allocation of $2,194,058.00;
B. APPROVE the REALLOCATION of Prior Year Funds to a COLLABORATIVE REHABILITATION PROGRAM with the City/County Health Department;
C. APPROVE the REALLOCATION of CDBG and HOME PROGRAM INCOME; and,
D. ADOPT an ORDINANCE Amending the City of Peoria 2017 AMENDED ANNUAL BUDGET Relating to the CDBG FUND and CAPITAL FUND to REALLOCATE CDBG PROGRAM INCOME to the Capital Fund in the Amount of $4,075.00.
Body
BACKGROUND:
A. Approval of 2017 Annual Action Plan
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 the goals of the City’s 2014-2018 HUD Consolidated Plan.
In June 2017, HUD announced the City’s 2017 grant allocation with approximately a 1.5% increase in CDBG funding, a less than 1% decrease in HOME funding, and a 2% decrease in ESG funding.
|
Entitlement Grant |
2017 Award Amount |
Difference from 2016 |
|
CDBG |
$1,550,735 |
Increase of $23,970 |
|
HOME |
$505,872 |
Decrease of $1,250 |
|
ESG |
$137,451 |
Decrease of $2,542 |
After analyzing the 2017 grant award amounts, current programming, requested programming, and remaining fund balances, City staff developed a proposed budget and the 2017 Annual Action Plan. A budget sheet that outlines the planned activities is attached along with a full copy of the Annual Action Plan.
The 2017 Annual Action Plan was published for a 14-day public comment period beginning July 2, 2017. 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 14-day public comment period.
The 2017 Annual Action Plan is due to HUD on or before August 16, 2017. This item is coming before the City Council later than usual due to the delay in the US Government enacting a full year budget for FY 2017 and a delay in HUD providing yearly allocation amounts. Grantees are not allowed to submit the Annual Action Plan until allocations are announced. Upon City Council approval, staff will submit the plan to HUD. HUD will review the plan to ensure regulatory compliance and then process the 2017 grant award agreements. Once the agreements are issued and signed by both HUD and the City, the 2017 grant funds will be available for programming.
B. Reallocation of Prior Year Funds
As required by HUD, the 2017 Annual Action plan also includes the reallocation of prior year resources. The plan proposes to reallocate the balances of the completed prior year programs listed below to the Housing Rehabilitation activity for an expanded partnership program with the Peoria City/County Health Department. The rehabilitation activities allowed under the City/County Health Department’s lead hazard control program and healthy homes program are more limited than rehabilitation allowed under CDBG. The additional funds will be used to conduct rehabilitation activities such as roof repairs, exterior repairs, and other rehabilitation activities that are not allowed under the Health Department’s grants. The program would be available to owner-occupied properties as a grant and to rental properties with landlords contributing 20% of the overall rehabilitation expenses under the current program design of the Health Department. By reallocating funds to serve eligible low income households within the City of Peoria participating in the Health Department’s program, the City and the Health Department can leverage federal funding to ensure all homes are code compliant and healthy once work is completed.
|
Project # |
Project Title |
Unused Funds |
|
15CDAD |
2015 Planning/Administration Funds |
$ 65,604.40 |
|
16PS00 |
2016 Public Service |
$ 685.12 |
|
16HZSW |
2016 Harrison Sidewalk Project |
$ 2,302.33 |
|
16ADA |
2016 ADA Sidewalk Ramp Installations |
$ 12,007.30 |
|
|
Total |
$ 80,599.15 |
C. Reallocation of CDBG and HOME Program Income
Since the City received less than $25,000 in CDBG program income, Federal regulations allow the City to allocate the funds to a local account with fewer restrictions. The funds are still required to be used for specific purposes such as funds for match or program leveraging for future grants or Community Development programs, temporary Code Enforcement Aides, equipment purchases for Community Development field staff, or Housing Rehabilitation Programs.
This request is to move $4,075.00 in 2016 Program Income to the Capital Fund under project PB1440.
In addition, the City received $5,839.74 amount in HOME program income. Unlike CDBG program income, all HOME program income must be reallocated to another HOME funded activity. This request is to allocate the HOME program income to the Focus Housing Leverage Activity as outlined in the annual plan.
D. Approve an Ordinance Amending the City Of Peoria 2016/2017 Biennial Budget
The ordinance will amend the 2016/2017 Biennial Budget to reflect the 2017 grant amounts for CDBG, HOME, and ESG.
FINANCIAL IMPACT: The budget of the 2017 Annual Action Plan as attached would be enacted along with the reallocation of prior year funds and program income.
NEIGHBORHOOD CONCERNS: The development of the 2017 Annual Action Plan included a 14-day comment period and outreach to numerous organizations as listed in the plan. Comments received from the Center for Prevention of Abuse and the City/County Health Department were in support of the planned projects. Copies of the letters received are located at the end of the plan.
IMPACT IF APPROVED: The City of Peoria will 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 will not be in compliance with HUD regulations and will not be eligible to receive HUD funding.
ALTERNATIVES: Funds could be allocated for alternative programs eligible under CDBG, HOME, and ESG as the Council directs.
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 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