ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request for the Following:
A. APPROVE the 2021 ANNUAL ACTION PLAN for Submittal to the Department of Housing and Urban Development (HUD), with a Total 2021 Grant Allocation of $2,717,216.00;
B. ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET to Adjust the CDBG Fund and Home Fund Revenues and Expenditures to Reflect the 2021 Federal Grant Award.
Body
BACKGROUND:
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 2020-2024 HUD Consolidated Plan.
This item is coming before the City Council in April due to the delay in the US Government enacting a full-year budget for FY 2021 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 February 2021, HUD announced the City’s 2021 grant allocation with approximately a 3% increase in CDBG funding, a 6% decrease in HOME funding, and a 2% increase in ESG funding.
|
Entitlement Grant |
2021 Award Amount |
Difference from 2020 |
|
CDBG |
$1,895,739 |
Increase of $46,952 |
|
HOME |
$ 663,810 |
Decrease of $10,237 |
|
ESG |
$157,667 |
Increase of $2,424 |
After analyzing the 2021 grant award amounts, current programming, requested programming, and remaining fund balances, City staff developed a proposed budget and the 2021 Annual Action Plan. A budget sheet that outlines the planned activities is attached along with a full copy of the Annual Action Plan. The budget includes administrative funding for staff for time working on the grant and moving a temporary employee to be a full-time staff member using administrative funds for the position.
The 2021 Annual Action Plan was published for a 30-day public comment period. The Plan was available for review at 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 2021 Annual Action Plan is due to HUD on or before April 26, 2021. Upon City Council approval, staff will submit the plan to HUD. HUD will review the plan to ensure regulatory compliance and then process the 2021 grant award agreements. Once the agreements are issued and signed by both HUD and the City, the 2021 grant funds will be available for programming.
B. Approve an Ordinance Amending the City of Peoria 2020/2021 Biennial Budget
The ordinance will amend the 2021 Revised Annual Budget to reflect the 2021 grant amounts for CDBG, HOME, and ESG.
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 comply 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 sub-recipients 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