ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to APPROVE the DRAFT 2015 CDBG, HOME and ESG BUDGETS for the Anticipated 2015 Grant Allocation from the U.S. Department of Housing and Urban Development (HUD).
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BACKGROUND:
The City of Peoria is considered an entitlement jurisdiction by the U.S. Department of Housing and Urban Development (HUD). As such, funds from the federal government, through HUD, are allocated to the City of Peoria on an annual basis by the use of a formula. Unlike many grants, there is no competitive application for these funds. Each entitlement jurisdiction receives a set amount based upon Congressional funding and adjustments to the allocation formula. The City receives three formula grants: 1) Community Development Block Grant (CDBG); 2) HOME Investment Partnership Grant and 3) Emergency Solutions Grant (ESG).
In anticipation of the 2015 grant allocation, staff must prepare and submit to HUD an Annual Action Plan that provides a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used to address the priority needs and specific goals of the current 2014-2018 Consolidated Plan. For past submissions, HUD has allowed the City to estimate the amount of funds to be awarded to complete and submit the Plan prior to the January 1st start date of the program year (plan submission in November of the preceding year). Recent HUD guidance has instructed the City to only submit the Plan using the actual allocation of awarded grants funds. This guidance has provided additional time to develop the Plan even when the 2015 program year started on January 1st. It is anticipated that the funding allocation announcements will be made in March / April of 2015.
The publication of the 2015 Annual Plan will follow the City's Citizen Participation Plan which includes a public comment period and approval by the City Council. Therefore, the final 2015 Annual Action Plan will be presented to Council for approval prior to its submission to HUD.
Staff is requesting that City Council approve the 2015 draft budget, funding levels and programs as indicated on Attachment 1. Staff has used the 2014 grant awards as a baseline for the draft 2015 budget and program funding. The final 2015 Annual Action Plan will include contingency language regarding budget adjustments to reflect the actual allocation.
A couple of notations regarding the 2015 draft budget:
· Public Service and ESG funding for 2015
· City Council approved two year grant agreements, ending on December 31, 2015, for both Public Service and ESG subgrantees (Public Service Council approval - April 22, 2014; item # 14-175 and ESG Council approval - December 10, 2013; item # 13-499). Therefore, the subgrantees for the Public Service and ESG program year have already been selected and approved by Council and amendments will be made to the current subgrantee agreements to reflect budget reallocations.
· Housing Rehab Programs - Owner Occupied Activity
· This activity includes programs such as, Roof Repair, Emergency Repair or other programs for low-income, owner occupied properties.
· Code Enforcement Activity
· This activity is for personnel costs of an additional two (2) code enforcement officers and one (1) building inspector in the Community Development Department.
Carry forward funds / Continuation of existing programs:
Staff is also recommending that the following programs that were already approved by Council continue into the future unchanged. The programs listed are provided for informational purposes and to complete the picture of all available programming.
PCCEO Down Payment $100,000
City Down Payment Assistance $110,705
Peoria City/County Health Dept. Lead Program Match $50,000
Focus Housing Leverage Program (CDBG) $43,953
Focus Housing Leverage Program (HOME) $14,942
Emergency Repair Program $31,902
*program currently opened for new applications*
Ameren Furnace Program $8,142
*program currently opened for new applications*
Roof Repair Program $265,832
*program will open in April 2015 for new applications*
FINANCIAL IMPACT: None at this time. The request is for Council to approve the draft 2015 CDBG, HOME and ESG budgets for the creation of the 2015 Annual Action Plan. An additional request will be sent to Council to adopt an ordinance amending the budget once the 2015 grant funds are received by the City.
NEIGHBORHOOD CONCERNS: None at this time. The 2015 Annual Action Plan will follow the City's Citizen Participation Plan which includes a public comment period. Staff will address comments received in the Plan.
IMPACT IF APPROVED: Staff will use the approved, draft budget to prepare the 2015 Annual Action Plan. The final Plan will be submitted to Council for approval prior to its submission to HUD.
IMPACT IF DENIED: Additional guidance will be needed to create a draft 2015 CDBG, HOME and ESG budget. The Annual Plan process will not begin and could result in additional delays for the program year once the 2015 grant allocations are announced by HUD.
ALTERNATIVES: There are numerous uses for HUD grant funds and the listing included under Attachment 2 is not exhaustive in terms of regulatory uses allowed. Different programs and/or services could be brought back to Council for further discussion.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Reinvest in neighborhoods.
DEPARTMENT: Community Development