Agenda Item Title:
Title
Community Development Department presenting, and recommending approval of, an amendment to the 2019 Annual Action Plan for the use of Community Development Block Grant funds awarded by the CARES Act.
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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). In 2020 the City was awarded CDBG funds, in addition to the annual grant, through the CARES Act. The received $234,295 in CDBG funds from the CARES Act funds to "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) The primary focus of the CDBG program is to support low and moderate income individuals and families.
HUD requires that an annual action plan, identifying projects and funding levels, be approved by the City and by HUD before CDBG funds may be utilized. An annual action plan typically addresses the annual grant funds. HUD has requested that the City amend the 2019 Annual Action Plan to include the projects that will be funded by the additional funds awarded through the CARES Act.
The City's Citizen Participation Plan requires that the City's Citizen Advisory Committee prepare and present annual action plans, as a recommendation, to the City Council for approval. Upon receiving the CARES Act award, staff began consulting with organizations regarding needs and impacts of Covid-19. In early June, a funding request application was made available for organizations that could address needs and impacts of Covid-19. The City received 14 applications, totaling $413,768. The Committee reviewed the applications, and on June 26th the Committee approved a recommendation. The Committee is recommending that 10 applications be fully funded and one application be partially funded. The recommendation includes funding for small business development and assistance ($125,000), public services ($58,000), housing repairs and rehab ($40,527), rent assistance ($9,268), and program administration ($1,500). Following approval by the City Council, the 2019 Annual Action Plan Amendment will be submitted to HUD. It is expected that funds will be available some time in August.
Fiscal Impact:
HUD was awarded $5 billion from the CARES Act as additional CDBG funds. The CARES Act directed HUD to distribute $2 billion of those funds through the typical CDBG allocation formula. Sandy City's portion of that allocation is $234,295.
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 #20-28c be approved, including the following:
1. Approval of the 2019 Annual Action Plan (Amended); and
2. Authorization for the Mayor to submit the 2019 Annual Action Plan (Amended) to the U.S. Department of Housing and Urban Development and to sign associated documents.