ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request for the Following:
A. APPROVE the 2020-2024 CONSOLIDATED PLAN for Submittal to the Department of Housing and Urban Development (HUD), with a Total 2020 Grant Allocation of $2,678,077.00;
B. ADOPT an ORDINANCE Amending the City of Peoria 2020 - 2021 BIENNIAL BUDGET Relating the CDBG Fund and Capital Fund to Reallocate CDBG Program Income to the Capital Fund, in the Amount of $5,052.00; and to Adjust the CDBG Fund and Home Fund Revenues and Expenditures to Reflect the 2020 Federal Grant Award.
Body
BACKGROUND:
A. Approval of 2020-2024 Consolidated Plan
As a recipient of funds from the Department of Housing and Urban Development (HUD), the City is required to develop a Consolidated Plan. This five-year plan outlines the needs and goals for the use of funds received through the Community Development Block Grant (CDBG), HOME Investment Partnership, and Emergency Solutions Grant (ESG). The plan also includes a one-year action plan that outlines how the 2020 grant funds will be utilized.
This item is coming before the City Council in March due to the delay in the US Government enacting a full year budget for FY 2020 and a delay in HUD providing yearly allocation amounts. Grantees are not allowed to submit Consolidated Plans until allocations are announced.
The 2020 allocation amounts are based on the overall congressional budget for each program and the formula allocations based on population and demographics. In February 2020, HUD announced the City’s 2020 grant allocation with approximately a 5% increase in CDBG funding, a 3% increase in HOME funding, and a 7% increase in ESG funding.
|
Entitlement Grant |
2020 Award Amount |
Difference from 2019 |
|
CDBG |
$ 1,848,787 |
Increase of $ 82,004 |
|
HOME |
$ 674,047 |
Increase of $ 18,118 |
|
ESG |
$ 155,243 |
Increase of $ 9,714 |
The HUD Consolidated Plan includes a requirement for citizen participation. City staff created a robust outreach program that included attending a variety of meetings and events for residents to complete a Community Needs Survey from July through September of 2019. The survey was available both online and in hard copy. There were over 770 responses to the survey. The survey results document created by staff is attached. The survey results along with consultation with other agencies was used as a basis for selecting the priority needs and the goals of the plan. The Analysis of Impediments also influenced the selection of needs and goals.
Based on these priority needs and goals, staff developed the one-year plan and the budget for the 2020 funding. The budget includes administrative funds for staff that manage the grant programs, including an additional administrative staff member. The budget also includes both CDBG and HOME funding for the competitive grant program started in the 2018 annual action plan. 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 HUD Chicago field office, the direct oversight body for Peoria grants. Executing high impact projects will be both consistent with HUD expectations and beneficial to Peoria’s urban neighborhoods. This desire to target funding to specific neighborhoods was also supported in the survey results.
The 2020 Consolidated Plan, which includes an updated Citizen Participation Plan and Analysis of Impediments, was published for a 30-day public comment period. The Plan was available for review at the Peoria Public Library Main Branch, the City’s Community Development Department, and online at the City’s website. Two public hearings on the plan were also held during the comment period.
The 2020 Consolidated Plan is due to HUD on or before April 13, 2020. Upon City Council approval, staff will submit the plan to HUD. HUD will review the plan to ensure regularity compliance and then process the 2020 grant agreements. Once the agreements are issued and signed by both HUD and the City, the 2020 grant funds will be available for programming.
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 $5,051.65 in 2019 Program Income to the Capital Fund under project D1440.
B. Approve an Ordinance Amending the City of Peoria 2020/2021 Biennial Budget
FINANCIAL IMPACT: The budget of the 2020 Annual Action Plan as attached would be enacted along with the reallocation of program income.
NEIGHBORHOOD CONCERNS: The development of the 2020 Consolidated Plan and Annual Action Plan included a robust citizen outreach plan. Over 770 survey responses were received. Two public hearings were also held during the 30-day comment period.
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: 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. Beautiful Peoria
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