Agenda Item Title:
Title
Community Development Department presenting the 2025-2029 Consolidated Plan and First Year Annual Action Plan (PY2025), including the proposed PY2025 project funding allocation, for the use of Community Development Block Grant funds as recommended by the Citizen Advisory Committee.
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Presenter:
Jake Warner, Long Range Planning Manager
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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 2020. A new consolidated plan is required to be submitted this year (2025). The Annual Action Plan identifies projects, 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 document 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 2025-2029 Consolidated Plan and First Year Annual Action Plan for the 2025 Program Year (FY2026) began approximately a year ago with efforts to identify community needs, including a survey conducted jointly with the County and a public hearing held by the Citizen Advisory Committee on September 18, 2024. The Committee then prepared a funding request application and established application review criteria. Funding request applications were accepted through January 13, 2025.
The Committee reviewed funding request applications and potential City projects. On April 16, 2025, the Committee finalized it's recommendation, including project funding allocation for program year 2025. Although the program year 2025 CDBG award has not yet been published by HUD, HUD's deadline for submittal of the consolidated plan and annual action plan is currently May 15, 2025. The Committee's recommendation is based on an estimated grant award of $325,000, and includes reprogramming $27,069.20 in prior year funds. The Committee's recommendation includes $48,750 for public services, $242,145 for housing activities, and $61,174 for program administration/eligible planning activities. The Citizen Advisory Committee's recommendation includes conditions to make adjustments to recommended funding based on the actual grant amount. The City Council is the final decision-maker regarding the draft document and proposed allocation.
Fiscal Impact:
The CDBG award has not yet been published for program year 2025. Sandy City received a CDBG award of $331,965.00 for program year 2024. The City's CDBG award amount has been decreasing for several years now. The 2025-2029 Consolidated Plan and 2025 Annual Action Plan are based on an estimated yearly award of $325,000. The 2025 Annual Action Plan also reprograms $27,069.20 of unused prior years 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 staff 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:
The 2025-2029 Consolidated Plan and First Year Annual Action Plan is scheduled to be presented to the City Council on April 29, 2025 for a decision by the City Council. 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 executing a grant agreement. Staff will also need to prepare environmental review records, subrecipient agreements/contracts for approved projects, and other associated documents.
Recommended Action and/or Suggested Motion:
Recommendation
Staff recommends that the City Council hold a public hearing as required by HUD regulations.