PRESENTER: Presenter
Jennifer Gates, Grants Coordinator
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SUBJECT: Title
Public hearing regarding the Program Year 2022 Consolidated Annual Performance and Evaluation Report for the U.S. Department of Housing and Urban Development Community Development Block Grant (CDBG) and CDBG-CV Grant programs.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
The City of New Braunfels has received annual grants from the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Entitlement Program since 1994. The annual funding amount varies each year as it is determined on a formula basis and then provided to entitled cities, counties, and states to help develop viable urban communities. Funds are distributed by the City throughout the community to provide eligible subrecipients with grant funding that can be used to revitalize neighborhoods, support affordable housing, provide economic opportunities, and improve community facilities and services intended for low- and moderate-income (LMI) residents. Any unallocated funds, including from previous Program Years (PY), are held in reserve in the U.S. Treasury to be utilized by the City for eligible projects at a future date in accordance with timeliness requirements.
In addition to the annual allocation of CDBG funding, the City also received two rounds of CDBG-CV funding from HUD during PY19 ($243,102) and PY20 ($423,819) to prevent, prepare for, and respond to the coronavirus (COVID-19). City Council also approved an increase to the first round of CDBG-CV funding of $68,923 from previously unallocated CDBG funding, for a total amount of $735,844 to support residents during the COVID-19 pandemic.
To receive HUD entitlement funds, the City annually submits a one-year Action Plan, including proposed projects and federal certifications. The Action Plan is developed in accordance with the City’s Citizen Participation Plan and subsequently approved by City Council and HUD. After submission, projects are then implemented in accordance with the approved one-year budget and certifications. The Consolidated Annual Performance and Evaluation Report (CAPER) is an annual report required by HUD at the conclusion of a program year that identifies the level of progress and accomplishments in meeting the priorities, goals, and objectives of the HUD-approved Consolidated Plan. The Consolidated Plan is a five-year strategic planning document, and this CAPER completes Program Year 2022 (PY22) of the 2020-2024 Consolidated Plan. CDBG program years operate from October 1 to the following September 30. As the program is ongoing, the PY22 CAPER also reflects CDBG-CV expenditures through September 30, 2023.
For PY22, the City received an allocation of $438,259. The PY22 Action Plan was approved by HUD in September 2022, allowing the program year to begin on October 1, 2022, as per the standard CDBG schedule. After the adoption of the Action Plan, the City identified six additional City-managed housing and public facilities projects that met eligibility criteria and were incorporated into the PY22 Action Plan after HUD approved the City’s request for a Substantial Amendment in May 2023, utilizing previously unallocated CDBG funds in the amount of $253,300.
HUD requires a comment period for a minimum of 15 days, and a public hearing prior to submission, allowing for citizens to comment on the information provided in the CAPER. The comment period for PY22 is November 20 to December 6; the public hearing is on November 27 during the City Council meeting. A full draft of the report is available for review at the City Secretary’s Office and the New Braunfels Public Library, and information is also available for review on the City’s Community Development - CDBG Program website during this time. As required by the granting agency, the final CAPER will be delivered to HUD no later than December 29, 2023.
ISSUE:
The CAPER for CDBG Program Year 2022 supports the City’s Strategic Priorities as follows:
Protect the integrity of our neighborhoods.
FISCAL IMPACT:
There is no fiscal impact to the City as the CAPER is a reporting document and does not affect the City’s budget.
Recommendation
RECOMMENDATION:
No action by City Council is necessary as this is a public hearing required by HUD to allow citizens to make comments on the Program Year 2022 Consolidated Annual Performance and Evaluation Report (CAPER) for the U.S. Department of Housing and Urban Development’s CDBG and CDBG-CV Grant programs.