Agenda Item Title:
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Community Development Department presenting, and recommending approval of, the third amendment to the 2019 Annual Action Plan for the use of the remaining Community Development Block Grant funds awarded in the third round of HUD's distribution of it's CARES Act allocation.
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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). The primary focus of the CDBG program is to support low and moderate income individuals and families. The CARES Act allocated funds to HUD to be distributed through the CDBG Program. HUD released the CARES Act funds through multiple rounds of distribution to CDBG grantees, such as Sandy City. In addition to the annual CDBG grant, Sandy City has now received CDBG grants in the first and third round of HUD's distribution of CARES Act funds. The CDBG funds from the CARES Act must "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)
HUD requires that all CDBG funds be programmed in an annual action plan, identifying projects and funding levels. HUD has requested that the City program all CDBG funds from the CARES Act as amendments to the 2019 Annual Action Plan (AAP). In the Spring of 2020 the City was awarded $234,295 in additional CDBG funds from the CARES Act in the first round of distribution. An amendment to the 2019 AAP to program those funds was approved by the City Council on July 14, 2020. The City then received $256,502 from the third round of distribution by HUD. A second amendment that allocated the majority ($164,187) of the additional funds was approved by the City Council on December 8, 2020. The third amendment, being presented, proposes the allocation of the remaining funds ($92,315).
CIty Staff opened a funding request application for the remaining funds in April 2021. The City received ten applications totaling $165,896. The City's Citizen Advisory Committee reviewed applications and met on May 19, 2021 to prepare a recommendation for the allocation of the remaining funds. The proposed third amendment to the 2019 Annual Action Plan reflects the Committee's recommendation.
Fiscal Impact:
HUD was awarded $5 billion from the CARES Act as additional CDBG funds. Sandy City's has received, between the first and third rounds of distribution, a total of $490,797. No additional distributions of CDBG funds from the CARES Act are expected to be received by Sandy City.
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 to the approved organizations. Staff will prepare environmental review records and subrecipient agreements for those projects.
Recommended Action and/or Suggested Motion:
Recommendation
That Resolution #21-17C be approved, including the following:
1. Approval of the 2019 Annual Action Plan (Amendment #3); and
2. Authorization for the Mayor to submit the 2019 Annual Action Plan (Amendment #3) to the U.S. Department of Housing and Urban Development and to sign associated documents.