Title
Substantial Amendment to the FY 2019-2020 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Funds; and FY 2020-2021 and FY 2021-2022 CDBG and HOME Program Funding Recommendations and Annual Action Plans (Applications) 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 housing and community development needs of the City, 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 funding. The Consolidated Plan also contains a specific one-year Action Plan for the use of CDBG and HOME Program funds. The Annual Action Plan 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. Attached for reference are the following Draft Annual Action Plans and Funding Recommendations for CDBG and HOME Programs for submittal to HUD: Amended FY 2019-2020 (Attachment E); FY 2020-2021 (Attachment E-1); and, FY 2021-2022 (Attachment E-2).
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. In FY 2019-2020, the City received additional special allocations of CDBG-CV (CARES Act) Program funds to be used to prevent, prepare for, and respond to the Coronavirus (COVID-19). As documented in HUD Program award letters and unless otherwise modified, the CDBG and HOME Programs funding to be considered are the following: 1. Amended FY 2019-2020: $1,001,999 for CDBG-CV3 (CARES Act) funding (Attachment A); 2. FY 2020-2021: $1,360,753 for CDBG and $577,480 for HOME (Attachment A-1); and, 3. FY 2021-2022: $1,321,465 for CDBG and $543,168 for HOME (Attachment A-2). The City's Housing & Community Development Division (HCD) administers the CDBG and HOME funds allocated to outside agencies and City projects.
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 as outlined as follows: FY 2019-2020 CDBG-CV3 (CARES Act) (Attachment B); FY 2020-2021 (Attachment B-1); and FY 2021-2022 CDBG/HOME Program Funding Set-Asides (Attachment B-2).
This competitive process for the outside agencies includes application reviews, site visits (modified due to COVID-19 restrictions), 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 May 25, 2021, the CACCD formulated its FY 2020-2021 recommendations on allocating the CDBG and HOME 'competitive' set-aside for non-profit outside organizations which included public participation to receive input from citizens regarding the outside agency funding recommendations (Attachment C - Citizen Engagement Summary). As a result of HUD flexibilities and waivers of the 15% Public Services cap, due to the overwhelming needs related to the COVID-19 pandemic, the CACCD's recommendations total $395,000 (includes $25,000 City Commission set-aside for Cold Weather Shelter Program) for CDBG and $171,622 for HOME.
On July 15, 2021, the CACCD formulated its FY 2021-2022 recommendations on allocating the CDBG and HOME 'competitive' set-aside for non-profit outside organizations which included public participation to receive input from citizens regarding the outside agency funding recommendations (Attachment C - Citizen Engagement Summary). The CACCD's recommendations total $298,200 (includes $25,000 City Commission set-aside for Cold Weather Shelter Program) for CDBG and $156,476 for HOME. FY2021-2022 recommendations fall under the normal 15% cap for funding Public Services.
Copies of the all CDBG and HOME applications for FY2020-2021 and FY2021-2022 that were reviewed by the CACCD are available via request from the HCD Office.
The CACCD funding recommendations for FY 2020-2021 & FY 2021-2022 CDBG (Attachment D) and FY 2020-2021 & FY 2021-2022 HOME Programs (Attachment D-1) 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. Draft Annual Action Plans (AAPs) 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 following City of Gainesville Annual Action Plans must be submitted to HUD by August 16, 2021: Amended FY 2019-2020 (Attachment E); FY 2020-2021 (Attachment E-1); and, FY 2021-2022 (Attachment E-2).
Fiscal Note
Annual Action Plans provide the following details: Amended FY 2019-2020 of $1,001,999 CDBG-CV3 (CARES Act) funding; FY 2020-2021 of $1,360,753 CDBG and $577,480 HOME funding; and, FY 2021-2022 of $1,321,465 CDBG and $543,168 HOME funding.
Recommendation
The City Commission: 1) hear a presentation from HCD staff, the City’s Consultant (as necessary) and the Citizens Advisory Committee for Community Development (CACCD), on the Substantial Amendment to the FY 2019-2020 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Funds; and FY 2020-2021 and FY 2021-2022 Annual Action Plans and Funding Recommendations for Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Funds; 2) approve and adopt the Amended FY 2019-2020 Annual Action Plan, the FY 2020-2021 Annual Action Plan, and the FY 2021-2022 Annual Action Plan for the CDBG and HOME Programs; 3) Authorize the City Manager or designee to submit the Amended FY 2019-2020 Annual Action Plan, the FY 2020-2021 Annual Action Plan, and the FY 2021-2022 Annual Action Plan to HUD; 4) Authorize the City Manager or designee to execute all necessary documents required for the Amended FY 2019-2020 Annual Action Plan CDBG-CV3 Program, the FY 2020-2021 Annual Action Plan and the FY 2021-2022 Annual Action Plan for the CDBG and HOME Programs; 5) Authorize the City Manager or designee to execute sub-recipient agreements with those outside agencies designated to receive FY 2020-2021 and FY 2021-2022 CDBG and HOME funds, subject to approval by the City Attorney as to form and legality; and 6) Authorize the City Manager or designee to take actions, as appropriate, to allocate the FY 2019-2020 CDBG-CV3 funds, FY 2020-2021 CDBG and HOME funds and FY 2021-2022 CDBG and HOME funds.