ACTION REQUESTED:
Title
Communication from the City Manager and Director of Community Development with a Request for the Following:
A. APPROVE the 2018 ANNUAL ACTION PLAN for Submittal to the Department of Housing and Urban Development (HUD), with a Total 2018 Grant Allocation of $2,570,003;
B. APPROVE the REALLOCATION of Prior Year Funds to projects outlined in the 2018 Annual Action Plan;
C. APPROVE the REALLOCATION of CDBG and HOME PROGRAM INCOME; and,
D. ADOPT an ORDINANCE Amending the City of Peoria 2018-2019 BIENNIAL BUDGET Relating to the CDBG FUND and HOME FUND to RECOGNIZE the INCREASE in GRANT Funding and the Corresponding Expenditures in the amount of $394,044; and the TRANSFER of CDBG PROGRAM INCOME to the CAPITAL FUND in the Amount of $15,467.
Body
BACKGROUND:
A. Approval of 2018 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 2014-2019 HUD Consolidated Plan.
In May 2018, HUD announced the City’s 2018 grant allocation with approximately an 11% increase in CDBG funding, a 42% increase in HOME funding, and a 2% increase in ESG funding.
|
Entitlement Grant |
2018 Award Amount |
Difference from 2017 |
|
CDBG |
$1,715,087 |
Increase of $164,352 |
|
HOME |
$715,855 |
Increase of $209,983 |
|
ESG |
$139,601 |
Increase of $2,186 |
After analyzing the 2018 grant award amounts, current programming, requested programming, and remaining fund balances, City staff developed a proposed budget and the 2018 Annual Action Plan. A budget sheet that outlines the planned activities is attached along with a full copy of the Annual Action Plan.
The 2018 budget includes both CDBG and HOME funding for a new competitive grant program. In an effort to produce strong, measurable and visible results, City staff have been encouraged by HUD to invest in high impact projects. This direction has come from the leadership of the HUD Chicago Field Office, the direct oversight body for Peoria grants. Executing high impact projects will be both consistent with HUD’s expectations and beneficial to Peoria’s urban neighborhoods. A memo describing this strategy in more detail is attached.
The 2018 Annual Action Plan was published for a 30-day public comment period. The Plan was available for review at the Peoria Public Library Downtown Branch, the City Clerk’s Office, the City’s Community Development Department, and online at 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 public comment period.
The 2018 Annual Action Plan is due to HUD on or before June 30, 2018. 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 2018 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 2018 grant award agreements. Once the agreements are issued and signed by both HUD and the City, the 2018 grant funds will be available for programming.
B. Reallocation of Prior Year Funds
As required by HUD, the 2018 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 two separate program. Remaining funding from the Historic District Rehab Program, prior year roof programs, and part of the 2017 public service program will be relocated for demolition.
|
Project # |
Project Title |
Unused Funds |
|
13HD00 |
Historic District Rehab Program |
$ 2,215.68 |
|
16RR00 |
Roof Program |
$ 107,155.30 |
|
17PS00 |
2017 Public Service |
$ 2,7591.56 |
|
|
Total |
$116,962.54 |
Additional remaining funds will be moved to the Public Facility program for an RFP for mechanical upgrades for non-profit owned buildings.
|
Project # |
Project Title |
Unused Funds |
|
17PS00 |
2017 Public Service |
$ 20,000.00 |
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 $15,467.54 in 2017 Program Income to the Capital Fund under project PB1440.
In addition, the City received $4,222 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 Competitive Grant program as outlined in the 2018 Annual Plan.
D. Approve an Ordinance Amending the City Of Peoria 2018/2019 Biennial Budget
The ordinance will amend the 2018/2019 Biennial Budget to reflect the 2018 grant amounts for CDBG, HOME, and ESG.
FINANCIAL IMPACT: The budget of the 2018 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 2018 Annual Action Plan included a 30-day comment period and outreach to numerous organizations as listed in 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 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Choose an item.
3. Choose an item.
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