Title
FY 2022-2023 CDBG and HOME Program Funding Recommendations and Annual Action Plan (Application) for Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Funds (B)
Explanation
As part of the City of Gainesville’s (City) Five-Year Consolidated Plan for the CDBG and HOME Programs as approved by the U.S. Department of Housing and Urban Development (HUD), the City must annually submit an Action Plan outlining the uses of the CDBG and HOME funds for that year. The Consolidated Plan contains an assessment of the City’s housing and community development needs, including a strategic plan for addressing the identified needs. The strategic plan portion of the document identifies potential funding sources, establishes general priorities for funding, and addresses other actions which the City will undertake during the five-year period, including any special allocations such as the CARES Act and HOME-ARP funds. The Consolidated Plan also contains a specific one-year Action Plan for the use of CDBG and HOME Program funds. The Annual Action Plan (AAP) specifically describes how the CDBG and HOME allocations are to be spent during the fiscal year. The Annual Action Plan estimates CDBG and HOME Program revenues and identifies specific projects to accomplish the goals and objectives stated in the Consolidated Plan. The Annual Action Plan is required to be submitted to HUD for annual entitlement funding.
Each year, upon HUD’s approval of the Annual Action Plan, the City receives an allocation of CDBG and HOME Program funds for local community development, housing activities, and public services. As documented in the June 2, 2022 HUD Program award letter and unless otherwise modified, the CDBG and HOME Programs funding to be considered are the following: FY 2022-2023: $1,305,794 for CDBG and $600,672 for HOME (Attachment 211454 A). As part of the Annual Action Plan process public participation to receive input from citizens regarding community interests, needs and suggestions is also required (Attachment 211454 B Citizen Engagement Summary).
The City's Office of Housing & Community Development (HCD) administers the CDBG and HOME funds allocated to City housing projects and to outside agencies. In accordance with the City Commission’s CDBG/HOME funding priorities, a portion of the CDBG/HOME funds are set-aside for Block Grant Administration, City Housing Programs, and the Cold Weather Shelter Program. The remaining CDBG/HOME funds are made available to non-profit Outside Agencies through a competitive process for public services and other housing programs outlined as follows:
FY 2022-2023 CDBG/HOME Program Funding Set-Asides (Attachment 211454 C). This competitive process for the outside agencies includes application reviews, and funding recommendations made by the Citizens Advisory Committee for Community Development (CACCD); a 15-member citizen advisory board appointed by the City Commission to make important recommendations for the use of CDBG and HOME Program funding. On July 19, 2022, the CACCD formulated its FY 2022-2023 recommendations on allocating the CDBG and HOME 'competitive' set-aside for non-profit outside organizations. The CACCD's recommendations total of $195,800 for Public Services (includes $25,000 City Commission set-aside for Cold Weather Shelter Program) and $175,000 Housing for CDBG and $180,150 for HOME. FY 2022-2023 recommendations fall under the normal 15% cap for funding Public Services.
Copies of all FY 2022-2023 CDBG and HOME applications reviewed by the CACCD are available via request from the HCD Office. The CACCD funding recommendations for FY 2022-2023 the CDBG (Attachment 211454 D) and HOME Programs (Attachment 211454 E) are provided. As a reminder, HUD recommends for local governments to implement a minimum $10,000 threshold for grant awards in order to maximize efficiency of limited resources and grant effectiveness. Since FY 2016, the $10,000 minimum threshold has been in effect for the funding of outside agencies.
The Draft Annual Action Plan and CACCD funding recommendations are reviewed by the City Commission and upon approval, submitted to HUD to identify the specific agencies and activities which will use CDBG and HOME funds. The FY 2022-2023 City of Gainesville Annual Action Plan (Attachment 211454 F) must be submitted to HUD by August 16, 2022.
Fiscal Note
The total CDBG and HOME Programs anticipated allocation for FY 2022-2023 is $1,906,466. The funding allocation for each program is as follows: CDBG - $1,305,794 CDBG and HOME - $600,672.
Recommendation
The City Commission, having heard presentations from HCD staff on the Fiscal Year 2022-2023 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Funds and from the Citizens Advisory Committee for Community Development (CACCD), on Fiscal Year 2022-2023 Outside Agency Funding Recommendations:
1) Approve and adopt the Fiscal Year 2022-2023 Annual Action Plan for CDBG and HOME Programs;
2) Authorize the Interim City Manager or designee to submit the Fiscal Year 2022-2023 Annual Action Plan to HUD;
3) Authorize the Interim City Manager or designee to execute all necessary documents required for the Fiscal Year 2022-2023 Annual Action Plan for the CDBG and HOME Programs;
4) Authorize the Interim City Manager or designee to execute sub-recipient agreements with those outside agencies designated to receive Fiscal Year 2022-2023 CDBG and HOME funds, subject to approval by the City Attorney as to form and legality; and
5)Authorize the City Manager or designee to take actions as appropriate to allocate the Fiscal Year 2022-2023 CDBG and HOME funds.