ACTION REQUESTED:
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Communication from the City Manager and Director of Community Development with a Request to RECEIVE and FILE an Update on CDBG FUNDING Related to COVID-19.
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BACKGROUND: As part of the CARES Act, the City of Peoria will receive $1,087,562 in Community Development Block Grant (CDBG) funds.
In addition, the City could choose to reallocate prior year funds to respond to COVID-19. To reallocate funds, a substantial amendment would be prepared by staff and a draft made available for public comment. The City Council could approve the amendment that would include the reallocation of funds at the 4/28 meeting. This amendment is submitted to HUD for approval with funds available immediately after submission to HUD.
What we know:
• HUD has reduced the public comment period for a substantial amendment for prior year funds from 30 days to 5 days.
• HUD has eliminated the requirement of an in person public hearing for public comments. Residents must still be giving reasonable notice to provide an opportunity to comment.
• Approximately $90,000 is ready to be reallocated from projects that came in under budget.
• The City can also reallocate $600,000 in funds set aside for other projects that have no commitments in place. Please see the chart below for possible funds to reallocate.
|
Project |
Year of Funding |
Amount |
Notes |
|
Health Department Partnership |
Various |
$11,801.34 |
Remaining funds from rehab program |
|
Public Service |
2019 |
$7,008.00 |
Unspent 2019 Funds |
|
Sidewalks |
2018 |
$20,784.73 |
Project Under Budget |
|
Public Improvements |
2018 |
$50,000.00 |
Infrastructure |
|
|
Total |
$89,594.07 |
|
|
Project |
Year of Funding |
Amount |
Notes |
|
Competitive Grant |
2018 |
$250,000.00 |
East Bluff - NOFA |
|
Competitive Grant |
2019 |
$350,000.00 |
South Village - NOFA |
|
|
Total |
$600,000 |
|
What we do not know yet:
• We do not know yet what waivers HUD will issue related to the use of prior year CDBG funds. Summaries of the legislation stated that the public service cap would be eliminated for 2019 and 2020 funds, but official guidance has not been released yet.
Recommendation for use of funds:
• Develop a Small Business Program similar to the State program. Because the State program is funded with CDBG funds, businesses in cities that receive a direct allocation of CDBG (like Peoria) funds are not eligible to participate in the State program.
o Businesses with at least 2 full time employees but not more than 50 employees total.
o Funding would be a forgivable grant with a maximum of $20,000 per business. The amount of the grant would be based on two months of operating costs with $20,000 the maximum.
o Business would have to agree to reopen with jobs retained within one year.
o Business would need to be located in and serve a qualified area, or the employees must self-certify as being at or below 80% AMI by household size.
|
Household Size |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
80 % Income Limit |
$44,600 |
$51,000 |
$57,350 |
$63,700 |
$68,800 |
$73,900 |
$79,000 |
Below outlines the information for the additional COVID-19 funding through the CARES Act.
What we know:
• The City will receive $1,087,562 in CDBG funds.
• These funds must be used “to prevent, to prepare for, or to respond to COVID-19” within the City of Peoria.
• The funds will need to meet all the CDBG regulations including meeting a National Objective and be used for an eligible activity.
What we do not know yet:
• We do not know yet the process for submitting a plan to HUD and timing of approval.
• We do not know yet the timing on when funds will be received.
• We do not know yet what waivers HUD will issue related to the use of these CDBG funds. Summaries of the legislation stated that the public service cap would be eliminated for these new funds, but official guidance has not been released yet
FINANCIAL IMPACT: CDBG funds may need to be reallocated
NEIGHBORHOOD CONCERNS: Changes in funding for CDBG would include a public comment period on the amended plan for funding.
IMPACT IF APPROVED: N/A
IMPACT IF DENIED: N/A
ALTERNATIVES: Alternative programs can also be identified by City Council.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
2. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
2. Have an efficient government.
DEPARTMENT: Community Development