Agenda Item Title:
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Community Development Department requesting City Council action regarding the 2024 Annual Action Plan for the use of CDBG 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). 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 funded during a program year (July 1-June 30) to address the needs and achieve the goals of the Consolidated Plan.
The AAP is prepared according to the recommendation of the City's Citizen Advisory Committee ("CDBG Committee"), as required by the City's Citizen Participation Plan. The City Council has approval authority, within the regulations and requirements pertaining to the CDBG program. Following approval by the City Council, the AAP is submitted to HUD. The 2024 AAP was presented to the City Council on April 2, 2024 tin a public hearing o review the Annual Action Plan. The Annual Action Plan is being presented to the City Council on April 16, 2024 for a decision on approval of the Annual Action Plan.
The Citizen Advisory Committee's preparation for the 2024 program year began in September 2023 and the Committee has met monthly since then as part of the process to formulate a recommendation. The Committee held a public hearing on September 20, 2023 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 16, 2024. The Committee reviewed funding request applications and potential City projects. On March 27, 2024, the Committee finalized it's recommendation for projects and funding allocations to be incorporated in the proposed 2024 AAP. The Committee's recommendation includes $48,750 for public services, $184,234 for housing activities, $40,000 for public facilities and infrastructure, and $58,023 for program administration/eligible planning activities.
HUD has not yet issued CDBG awards amounts for the 2024 program year, however the deadline to submit the Annual Action plan to HUD is May 15, 2024. While HUD may extend the submittal deadline, it has not done so yet. City staff and the Citizen Advisory Committee have prepared the 2024 Annual Action Plan based on an estimated grant amount of $325,000. The Citizen Advisory Committee's recommendation includes conditions to make adjustments to recommended funding based on the actual grant amount. Those conditions have been included in the proposed resolution.
Fiscal Impact:
Sandy City received a CDBG grant of $337,223 for the 2023 program year. Funding has decreased by approximately $30,000 per year each year over the past two years. Staff estimates that the City will receive approximately $325,000 in CDBG funds for the 2024 program year. The City will also be reprogramming $6,007.76 in unused prior year funds from completed or cancelled activities. Up to 20% of the grant can be used for program administration/eligible planning activities and up to 15% 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 #24-12c, a resolution approving the 2024 Annual Action Plan for the use of CDBG funds during the 2024 program year and authorizing the Mayor to submit the 2024 Annual Action Plan to HUD and execute associated documents.
2. Motion to Approve with revisions - Approve Resolution #24-12c, a resolution approving the 2024 Annual Action Plan for the use of CDBG funds during the 2024 program year and authorizing the Mayor to submit the 2024 Annual Action Plan to HUD and execute associated documents; subject to the following revisions: (expressed revisions).
3. Motion to Deny - Not approve Resolution #24-12c, a resolution approving the 2024 Annual Action Plan for the use of CDBG funds during the 2024 program year and authorizing the Mayor to submit the 2024 Annual Action Plan to HUD and execute associated documents.
4. Table the Action - Table the action regarding Resolution #24-12c to a future decision. (If necessary, provide a date for further consideration and/or give direction to Staff for additional information requested.)