Agenda Item Title:
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Community Development Department requesting City Council action regarding the 2026 Annual Action Plan (PY2026), including the proposed PY2026 activity funding allocation, for the use of Community Development Block Grant funds.
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Presenter:
Jake Warner, Long Range Planning Manager/CDBG Coordinator
Sarah Stringham, Senior Planner/Assistant CDBG Coordinator
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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). CDBG funds are primarily intended to benefit low income residents of the City. HUD requires that the City submit a strategic plan (Consolidated Plan) every five years and an Annual Action Plan (AAP) every year. The Consolidated Plan identifies needs and goals. The City last adopted a Consolidated Plan in 2025. The Annual Action Plan identifies projects and activities, and the associated funding, that are being funded during a program year (July 1-June 30) to address the needs and achieve the goals of the Consolidated Plan.
The proposed 2026 Annual Action Plan was prepared according to the recommendation of the City's Citizen Advisory Committee ("CDBG Committee"), as required by the City's Citizen Participation Plan. Preparation for the 2026 Annual Action Plan for the 2026 program year (FY2026) began approximately a year ago with efforts to identify community needs, including a public hearing held by the Citizen Advisory Committee on September 19, 2025. The Committee then prepared a funding request application and established application review criteria. Funding request applications were accepted through January 12, 2026.
The Committee reviewed funding request applications and potential City projects and activities during February and March. The City was notified of it's 2026 CDBG award amount on April 11th. The award amount for 2026 is $374,728. Additionally, $54,668.24 of unused funds from prior years is proposed to be programmed. On April 15, 2026, the Committee finalized a funding allocation recommendation for the total of $429,396.24. The Committee's recommendation, with minor adjustments to reconcile to the current draft of the City's FY2027 budget, includes $56,209.00 for public services, $305,804.24 for housing activities, and $67,383.00 for program administration/eligible planning activities. The City Council is the final decision-maker regarding the draft document and proposed allocations.
The 2026 Annual Action Plan was presented to the City Council as an informational item on April 21, 2026.
Fiscal Impact:
For FY2027 (PY2026) Sandy City received a CDBG award of $374,728 for program year 2026 and is proposing to reprogram $54,668.24 of prior year funds. Up to 20% of the grant amount can be used for eligible planning and program administration. CDBG administration funding partially funds the salary expenses of two City employees, City IT expenses, City Risk Management expenses, City phone expenses, and other administrative expenses. Up to 15% of the annual grant amount can be used for public services.
Further action to be taken:
Following approval by the City Council, Staff will finalize the necessary documents for submittal to HUD. HUD is required to review and approve the submitted documents prior to availability of grant funds. Staff will prepare environmental review records and subrecipient agreements/contracts for approved projects.
Recommended Action and/or Suggested Motion:
Recommendation
Alternative Motions:
1. Motion to Approve - Approve Resolution #26-56C, a resolution approving the 2026 Annual Action Plan for the use of CDBG funds during the 2026 program year and authorizing the Mayor to submit the 2026 Annual Action Plan to HUD and execute associated documents.
2. Motion to Approve with revisions - Approve Resolution #26-56C, a resolution approving the 2026 Annual Action Plan for the use of CDBG funds during the 2026 program year and authorizing the Mayor to submit the 2026 Annual Action Plan to HUD and execute associated documents; subject to the following revisions: (expressed revisions).
3. Motion to Deny - Not approve Resolution #26-56C, a resolution approving the 2026 Annual Action Plan for the use of CDBG funds during the 2026 program year and authorizing the Mayor to submit the 2026 Annual Action Plan to HUD and execute associated documents.
4. Table the Action - Table the action regarding Resolution #26-56C to a future decision. (If necessary, provide a date for further consideration and/or give direction to Staff for additional information requested.)