ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request for the Following:
A. APPROVE the 2019 ANNUAL ACTION PLAN for Submittal to the Department of Housing and Urban Development (HUD), with a Total 2019 Grant Allocation of $2,568,241.00;
B. APPROVE the REALLOCATION of Prior Year Funds to Projects Outlined in the 2019 Annual Action Plan;
C. APPROVE the REALLOCATION of CDBG PROGRAM INCOME; and,
D. ADOPT an ORDINANCE Amending the City of Peoria 2019 REVISED ANNUAL BUDGET Relating to the CDBG Fund and Capital Fund to Reallocate CDBG Program Income to the Capital Fund, in the Amount of $4,670.00; and to Adjust the CDBG Fund and Home Fund Revenues and Expenditures to Reflect the 2019 Federal Grant Award.
Body
BACKGROUND:
A. Approval of 2019 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.
This item is coming before the City Council in the middle of the year due to the delay in the US Government enacting a full year budget for FY 2019 and a delay in HUD providing yearly allocation amounts. Grantees are not allowed to submit the Annual Action Plan until allocations are announced.
The allocation amounts are based on the overall congressional budget for each program and the formula allocations based on population and demographics. In April 2019, HUD announced the City’s 2019 grant allocation with approximately a 3% increase in CDBG funding, an 8% decrease in HOME funding, and a 4% increase in ESG funding.
|
Entitlement Grant |
2019 Award Amount |
Difference from 2018 |
|
CDBG |
$1,766,783 |
Increase of $51,696 |
|
HOME |
$ 655,929 |
Decrease of $59,926 |
|
ESG |
$145,529 |
Increase of $5,928 |
After analyzing the 2019 grant award amounts, current programming, requested programming, and remaining fund balances, City staff developed a proposed budget and the 2019 Annual Action Plan. A budget sheet that outlines the planned activities is attached along with a full copy of the Annual Action Plan.
The 2019 budget 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 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 detailed memo about these projects of impact is attached.
The 2019 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 2019 Annual Action Plan is due to HUD on or before June 12, 2019. Upon City Council approval, staff will submit the plan to HUD. HUD will review the plan to ensure regulatory compliance and then process the 2019 grant award agreements. Once the agreements are issued and signed by both HUD and the City, the 2019 grant funds will be available for programming.
B. Reallocation of Prior Year Funds
As required by HUD, the 2019 Annual Action plan also includes the reallocation of prior year resources. These balances are due to projects coming in under budget. The plan proposes to reallocate the balances of the CDBG completed prior year programs listed below into the Health Department partnership Program. This program, which began in 2017, provides additional funds for a partnership with the Peoria City/County Health Department’s lead hazard control program.
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, systems 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. Remaining funding from the Administrative funds, project delivery funds, public facility projects, and ADA Ramps project.
|
Project # |
Project Title |
Unused Funds |
|
17CAD |
Administrative Funds |
$ 75,860.26 |
|
17CPD |
Project Delivery |
$ 10,315.24 |
|
19PF1 |
Public Facilities Contingency |
$ 2,000.00 |
|
19PF2 |
Public Facilities Contingency |
$ 1,443.00 |
|
17ADA |
ADA Ramps |
$ 23,267.08 |
|
|
Total |
$112,885.58 |
There were also HOME funds that were unallocated in 2017 due to an unexpected grant increase and one project that was under budget from 2018 that are proposed to be reallocated to the Competitive Grant program outlined in the 2019 Annual Action Plan.
|
Project # |
Project Title |
Unused Funds |
|
17CH01 |
2017 CHDO Funds |
$ 6.670.76 |
|
17HM00 |
Unallocated Funds |
$ 5,872.00 |
|
|
Total |
$12,542.76 |
C. Reallocation of CDBG 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 $4,670 in 2018 Program Income to the Capital Fund under project D1440.
D. Approve an Ordinance Amending the City Of Peoria 2018/2019 Biennial Budget
The ordinance will amend the 2019 Revised Annual Budget to reflect the 2019 grant amounts for CDBG, HOME, and ESG and the reallocation of CDBG program income in the amount of $4,670 from the CDBG Fund to the Capital Fund.
FINANCIAL IMPACT: The budget of the 2019 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 2019 Annual Action Plan included a 30-day comment period and outreach to numerous organizations as listed in the plan. All comments and responses are included 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. Beautiful Peoria
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