SUBJECT/RECOMMENDATION:
Title
Recommend funding allocations for the FY 2020/2021 Annual Action Plan, which is the first Action Plan of the FY 2020/21 - FY 2024/25 Five-Year Consolidated Plan, to implement the goals and objectives set forth in the Consolidated Plan, as required by HUD.
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SUMMARY:
On July 16, 2020, Economic Development and Housing Department staff will recommend City Council approval of the FY 2020/2021 - 2024/2025 Five-Year Consolidated Plan (Con Plan) identifying the city’s goals and objectives with respect to its administration of HOME Investment Partnerships (HOME) Program and Community Development Block Grant (CDBG) Program funds. These funds are provided to the City by the United States Department of Housing and Urban Development. Under the Five-Year 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 budget and proposed expenditures to meet the goals and objectives established in the Five-Year Consolidated Plan.
Funds are used to develop viable communities and sustain existing ones. This year’s Annual Action Plan allocates federal funds to 1) provide safe, decent and affordable housing opportunities to extremely-low to moderate-income households for new and existing homes; 2) construct and/or renovate public facilities; 3) fund public service programs and 4) provide for economic opportunities
The City of Clearwater anticipates an allocation of $837,360 in CDBG funding and $431,436 in HOME funding for FY 2020/2021. 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 draft Five-Year Consolidated Plan. To obtain these partners, the City published a Notice of Funding Availability in the Tampa Bay Times and on its website on February 28, 2020. The notice informed the public of the resources the City anticipates receiving and the eligible uses of those resources. It also informed the public of the application period for requesting funds. The applications were originally due by midnight on March 27, 2020; the deadline was later extended to April 10 due difficulties various applicants were experiencing due to the COVID-19 pandemic. The City received 28 applications for 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), and the City Clerk reviewed and ranked the applications. The City’s annual process included providing applicants with an opportunity to present their proposed projects to the NAHAB; presentations were scheduled for the April 14 meeting; however, this meeting was cancelled due restrictions imposed by the COVID-19 pandemic. City Housing staff reviewed each application to ensure proposed activities meet HUD requirements.
Each year the City may allocate up to 15% of its CDBG funds for public service activities. This year, the City received 13 requests for funding of public services restricted by the 15% cap in the amount of $384,164. However based on HUD’s formula and expected entitlement, $125,604 is available for funding.
In prior years, the NAHAB endorsed a funding matrix for Public Services applicants that established the funding ratios based upon the TRC’s ranking and City Housing staff’s determination of eligibility. Utilizing the funding matrix ensures the majority of the applicants are funded fairly and appropriately.
The FY 2020/2021 Annual Action Plan is due to HUD by August 15, 2020. All organizations that will be receiving an allocation will have agreements prepared and executed by October 1, 2020. Staff performs compliance monitoring with funded organizations on an annual basis.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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