ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with the following Requests:
A. APPROVE the 2016 ANNUAL ACTION PLAN for Submittal to the Department of Housing and Urban Development (HUD), with a Total Grant Allocation of $2,171,142.00.
B. APPROVE an ORDINANCE Amending the City of Peoria 2016/2017 BIENNIAL BUDGET Relating to the 2016 CDBG, HOME and ESG BUDGETS to Reflect the Actual 2016 Allocation from the UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
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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.
In February 2016, HUD announced the City’s 2016 grant allocation with approximately a 2% decrease in CDBG funding, a 5% increase in HOME funding, and a 1% decrease in ESG funding. Upon announcement of the 2016 grant allocations, the City can submit the final 2016 Annual Action Plan to HUD.
|
Entitlement Grant |
2016 Award Amount |
Difference between 2015 and 2016 Award Amount |
|
CDBG |
$1,526,765 |
Decrease of $28,368 |
|
HOME |
$ 504,384 |
Increase of $24,023 |
|
ESG |
$ 139,993 |
Decrease of $1,012 |
After analyzing the 2016 grant award amounts, current available programming and remaining fund balances from previous grant awards, City staff developed a proposed budget and 2016 Annual Action Plan.
The 2016 Annual Action Plan was published for a 30-day public comment period beginning February 20, 2016. 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 2016 Annual Action Plan is due to HUD on or before April 15, 2016. Upon City Council approval, staff will submit the Plan to HUD. HUD will review the Plan to ensure regulatory compliance and then process the 2016 grant award agreements. Once the agreements are issued and signed by both HUD and the City, the 2016 grant funds will be available for programming. It is anticipated that funding will be available in August 2016.
FINANCIAL IMPACT: The budget of the 2016 Annual Action Plan of $2,171,142 is as follows:
|
CDBG Program |
Budget |
|
ADA Ramps |
$200,000 |
|
City Housing Rehab Programs - Owner Occupied |
$207,765 |
|
Demolition Program |
$100,000 |
|
Public Service Set Aside (15% cap) |
$229,000 |
|
Peoria City/County Health Dept. Lead Match |
$130,000 |
|
Housing Rehab Project Delivery |
$60,000 |
|
Code Enforcement Project Delivery |
$345,000 |
|
Planning and Administration |
$255,000 |
|
Total |
$1,526,765 |
|
HOME ProgramBudget |
|
|
Focus Housing Leverage |
$154,384 |
|
CHDO Set Aside (minimum 15%) |
$300,000 |
|
Administration |
$ 50,000 |
|
Total |
$504,384 |
|
ESG ProgramBudget |
|
|
Emergency Solutions Grant Program |
$130,293 |
|
Administration |
$ 9,700 |
|
Total |
$139,993 |
Once funding becomes available, a request for adoption of an ordinance amending the City’s budget for fiscal year 2016 will be sent to City Council for approval.
NEIGHBORHOOD CONCERNS: The development of the 2016 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. No objections were received from the public regarding the Plan goals, objectives or budget.
IMPACT IF APPROVED: The City of Peoria will be in compliance with HUD regulations and will be eligible to receive the 2016 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 2016 grant allocation.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
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