ACTION REQUESTED:
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Communication from the City Manager and the Finance Director/Comptroller and the Community Development Director with a Request to ADOPT an ORDINANCE Amending the City of Peoria 2016/2017 BIENNIAL BUDGET Relating to the CDBG, HOME and CAPITAL BUDGET for FISCAL YEAR 2016 to Reflect the Actual 2016 Allocation From the United States Department of Housing and Urban Development (HUD) and the Transfer of CDBG Program Income to the Capital Fund.
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BACKGROUND:
The City of Peoria is considered an entitlement jurisdiction by the United States Department of Housing and Urban Development (HUD). As such, funds from the Federal government, through HUD, are allocated to the City on an annual basis by the use of a formula.
On March 22, City Council Approved the Budget for CDBG, HOME, and ESG (Item # 16-088). On June 2, HUD announced a slight increase of $2,738 to the City's 2016 HOME allocation and this was reflected in the funding the City received on August 15. This additional funding must be allocated to a 2016 HOME project.
In addition, CDBG formula grants create program income through projects that generate repayments to the City. These program income funds need to be moved to local accounts and allocated to eligible activities.
Requested Action #1 (Amendment for 2016 HOME funds)
The first action requested is to approve the additional $2,738 in HOME funds for the CHDO project for a total of $302,738 for this project as reflected in Attachment 1 - 2016 HUD Entitlement Budget. The rest of the budget remains the same as what was approved on March 22.
Requested Action #2 (allocation of CDBG program income)
Federal regulations define CDBG program income as - Any income received in a single program year by the recipient and all its subrecipients if the total amount exceeds $25,000. Therefore, income received in a single program year that is less than $25,000 is not considered to be CDBG program income. Once funds are receipted as ...
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