Agenda Item Title:
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Community Development Department requesting Council action regarding the 2022 Annual Action Plan, including the allocation of funds as recommended by the Citizen Advisory Committee, for the use of CDBG funds during the 2022 program year.
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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). 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 adopted a Consolidated Plan in 2020. The Annual Action Plan identifies projects, and the associated funding, that are being funding during the program year (7/1-6/30) to address the needs and achieve the goals of the Consolidated Plan.
The Citizen Advisory Committee's preparation for the 2022 program year began in September 2021 and the Committee has met monthly since then to prepare it's recommendation. The Committee held a public hearing on September 15, 2021 to consider needs in the community. The Committee then prepared a funding request application and established application review criteria. Funding request applications were accepted through January 10, 2022. The Committee reviewed funding request applications and potential City projects. On March 16, 2022, the Committee finalized it's recommendation for projects and funding allocations to be incorporated in the proposed 2022 AAP.
The 2022 AAP has been prepared according to the recommendation of the City's Citizen Advisory Committee ("CDBG Committee"), as required by the City's Citizen Participation Plan. As of the Committee's meeting in March, HUD had not released the actual amount of Sandy City's CDBG award for the 2022 program year due to delays in the federal budget. However, faced with a May 15th deadline to submit the 2022 AAP to HUD, the Committee approved it's recommendation based on an estimated grant amount of $400,000 and included conditions to make adjustments to recommended allocations once the actual grant amount was released by HUD. Following the Committee's meeting in March, HUD issued a memo stating that grant amounts would be released by May 13th and that grantees, such as Sandy City, would have up to 60 days from the release of the grant amounts to submit the 2020 AAP. As the grant amounts, at the time that this report is being prepared, have not been released, the recommended project allocation amounts included here and in the attached draft of the 2022 AAP are based on the estimated grant amount of $400,000. As the grant amounts are expected to be release by May 13, 2022, actual project allocation amounts, based on the conditions for adjustment recommended by the Committee, will be presented during the public hearing on May 17, 2022.
The City Council has approval authority for Annual Action Plans, within the regulations and requirements pertaining to the CDBG program. Following approval by the City Council, the plans will be submitted to HUD.
Fiscal Impact:
The City is typically awarded approximately $400,000 per year in CDBG funds. Additionally, the City will be reprogramming $6,098 in unused prior year funds from completed activities. Up to 20% of the grant can be used for program administration/planning activities and up to 15% can be used for public services. Any funding not used for program administration/planning or public services can be allocated to other eligible projects (i.e. infrastructure, facilities, housing, economic development) that serve low and moderate income persons.
Further action to be taken:
Following approval by the City Council, Staff will finalize the necessary documents for submittal of the 2022 AAP to HUD. HUD is required to review and approve the submitted documents prior to funds being available for distribution. Staff will then prepare environmental review records, subrecipient contracts, and other associated documents for approved projects.
Recommended Action and/or Suggested Motion:
Recommendation
Alternative Motions:
1. Motion to Approve - Approve Resolution #22-26c, a resolution approving the 2022 Annual Action Plan for the use of CDBG funds during the 2022 program year and authorizing the Mayor to submit the 2022 Annual Action Plan to HUD and execute associated documents.
2. Motion to Approve with revisions - Approve Resolution #22-26c, a resolution approving the 2022 Annual Action Plan for the use of CDBG funds during the 2022 program year and authorizing the Mayor to submit the 2022 Annual Action Plan to HUD and execute associated documents; subject to the following revisions: (expressed revisions).
3. Motion to Deny - Not approve Resolution #22-26c, a resolution approving the 2022 Annual Action Plan for the use of CDBG funds during the 2022 program year and authorizing the Mayor to submit the 2022 Annual Action Plan to HUD and execute associated documents.
4. Table the Action - Table the action regarding Resolution #22-26c to a future decision. (If necessary, provide a date for further consideration and/or give direction to Staff for additional information requested.)