Agenda Item Title:
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Community Development Department presenting, and recommending approval of, the second amendment to the 2019 Annual Action Plan for the use of Community Development Block Grant funds awarded in the third round of HUD's distribution of it's CARES Act allocation.
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Presenter:
Jake Warner
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Description/Background:
Sandy City is an annual grantee of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The primary focus of the CDBG program is to support low and moderate income individuals and families. The CARES Act allocated funds to HUD to be distributed through the CDBG Program. HUD is releasing the CARES Act funds through multiple rounds of distribution to CDBG grantees, such as Sandy City. In addition to the annual CDBG grant, Sandy City has now received CDBG grants in the first and third round of HUD's distribution of CARES Act funds. The CDBG funds from the CARES Act must "prevent and respond to the spread of infectious diseases such as the coronavirus" within the "range of eligible (CDBG) activities." (Quick Guide to CDBG Eligible Activities to Support Coronavirus and Other Infectious Disease Response, 4/6/2020)
HUD requires that all CDBG funds be programmed in an annual action plan, identifying projects and funding levels. HUD has requested that the City program all CDBG funds from the CARES Act as an amendment to the 2019 Annual Action Plan. In the Spring of 2020 the City was awarded $234,295 in additional CDBG funds from the CARES Act in the first round of distribution. CIty Staff opened a funding request application at the time. The City's Citizen Advisory Committee reviewed applications, and prepared a recommendation for applications to be funded. City Staff prepared an amendment to the 2019 Annual Action plan, and presented it to the City Council in July 2020. The City Council approved the amendment, the amended 2019 Annual Action Plan was submitted to HUD, and City Staff is now administering those funds. The City has now received an additional $256,502 in HUD's third round of distributing the CARES Act funds. The same process was followed to prepare another recommendation by the Citizen Advisory Committee and another amendment to the 2019 Annual Action Plan. The proposed amendment requires approval by the City Council prior to submittal to HUD.
The Committee received five applications totaling requested funds of $164,187. All applications requested funds for public services, including support for a homeless shelter, victims of domestic violence, an adult addiction program, and mortgage assistance. The Committee has recommended that all five applications be fully funded. The Committee has also discussed reopening the funding request application in a couple of months to address the remainder of the funds ($92,315).
Fiscal Impact:
HUD was awarded $5 billion from the CARES Act as additional CDBG funds. Sandy City's has received, between the first and third rounds of distribution, a total of $490,797.
Further action to be taken:
Following approval by the City Council, Staff will prepare the necessary documents for submittal to HUD. HUD is required to review and approve the submitted documents prior to funds being available for distribution. Staff will prepare environmental review records and subrecipient agreements for those projects.
Recommended Action and/or Suggested Motion:
Recommendation
That Resolution #20-48c be approved, including the following:
1. Approval of the 2019 Annual Action Plan (Amendment #2); and
2. Authorization for the Mayor to submit the 2019 Annual Action Plan (Amendment #2) to the U.S. Department of Housing and Urban Development and to sign associated documents.