SUBJECT/RECOMMENDATION:
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Approve the City of Clearwater’s Fiscal Year 2017/2018 Annual Action Plan, which is the 2nd Action Plan of the Fiscal Year 2016/2017 - Fiscal Year 2019/2020 Four-Year Consolidated Plan (Consolidated Plan), to implement the goals and objectives set forth in the Consolidated Plan, as required by Housing and Urban Development (HUD), and authorize the City to enter into agreements with HUD and organizations approved for funding.
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SUMMARY:
On July 21, 2016 City Council approved the 2016/2017 - 2019/2020 Consolidated Plan identifying the city’s goals and objectives with respect to the city’s administration of HOME and Community Development Block Grant (CDBG) Program funds. Under the Consolidated Plan, the City is required to create and implement a plan each year to identify the sources and uses of these funds for housing, community programs, and economic development. This plan, referred to as an Annual Action Plan, provides HUD with the City’s housing budget and proposed expenditures based on the entitlement funds and estimated program income that the City will receive in the upcoming fiscal year to meet the goals and objectives established in the Consolidated Plan.
Funds are used to develop viable communities and sustain existing ones. In addition, the funds will be used to provide safe, decent and affordable housing to assist extremely low- to moderate-income households. This year’s Annual Action Plan allocates federal funds to provide housing opportunities to extremely low- to moderate-income households for new and existing homes, construction and/or renovation of public facilities, and to fund public services programs.
Clearwater anticipates a total allocation of $656,940 in CDBG funding and $278,435 in HOME funding for Fiscal Year 2017/2018. CDBG Revolving Loan Fund program income and Reprogrammed NSP3 Program Income is expected in the amounts of $250,000 and $350,000, respectively. CDBG carryover funds from previous program years are expected in the amount of $288,489. In addition, the City anticipates of HOME carryover funds and HOME program income in the amounts of $295,169 and $425,000, respectively. Funds provided through the CDBG Program may be used for housing, community and economic development, public services and facilities, acquisition, relocation, and administration. Funds provided through the HOME Program are limited to housing-related activities and administration.
The City partners with several non-profit agencies to implement the goals and objectives the City has established in the Consolidated Plan. To obtain these partners, the City annually publishes a Notice of Funding Availability in the local newspaper and on its website in February. This notice informs the public of the resources the City will make available and the eligible uses of these resources. It also informs them of the application period for requesting funds. The applications were due in March and the City received a total of 21 applications for funding. All 21 applications received an allocation of funding.
A Technical Review Committee (TRC) comprised of professionals in the social service and grants community, a member of the City’s Neighborhood and Affordable Housing Advisory Board (NAHAB), the City Clerk and Planning Department staff reviewed and ranked the applications. Applicants were given an opportunity to present their proposed projects at the April monthly NAHAB meeting. City Housing staff also reviewed each application to ensure it met HUD’s baseline requirements. The NAHAB met on July 11, 2017 and approved the recommended allocations contained in the Fiscal Year 2017/2018 Annual Action Plan.
Each year the City may allocate up to 15% of its CDBG funds for Public Services activities. This year the City received requests for funding of public services in the amount of $264,900, however based on HUD’s formula, $98,541 was available to fund nine organizations. The NAHAB endorsed a funding matrix for Public Services applicants that dictate the funding ratios based on the ranking. Utilizing the funding matrix ensures the majority of the applicants are funded. This year all nine agencies were funded.
The Fiscal Year 2017/2018 Annual Action Plan is due to HUD on August 15, 2017. All organizations that will be receiving an allocation will have agreements prepared and executed by October 1, 2017. Staff will perform compliance monitoring with funded organizations on an annual basis.