PRESENTER: Presenter
Jennifer Gates, Grants Coordinator
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SUBJECT: Title
Public hearing regarding a Substantial Amendment to the Program Year 2022 Annual Action Plan for the Community Development Block Grant provided by the U.S. Department of Housing and Urban Development.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
The City of New Braunfels has been fortunate to receive 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. Of the total annual funding amount, specific percentages of the funding are eligible to be allocated to CDBG program administration (20% cap), public service activities (15% cap), and housing and public facility projects (65% minimum, 100% maximum). Any additional funds, including from previous Program Years, are held in reserve in the U.S. Treasury to be utilized by the City for housing/public facilities projects at a future date in accordance with timeliness requirements and project/program eligibility.
In accordance with Federal requirements for CDBG funding, the City developed an Annual Action Plan that outlined the projects and programs being supported with CDBG funds during Program Year 2022 (PY22) to further the goals of the HUD-approved Consolidated Plan, a five-year strategic planning document. After receipt of approval from City Council and HUD, the currently awarded projects and programs began on October 1, 2022, and will conclude by September 30, 2023, for public service, housing, and public facility activities performed by 12 local nonprofit organizations.
Since the adoption of the PY22 Annual Action Plan, the City has identified several additional housing and public facilities projects that meet eligibility criteria and will be completed by September 30, 2023. As such, the City is requesting a Substantial Amendment to the adopted PY22 Annual Action Plan as required by HUD to incorporate the following City-managed projects that will be funded utilizing currently unallocated PY20 and PY21 CDBG funds from previously awarded activities that could not proceed during PY21:
HUD requires a 30-day comment period, allowing for citizens to provide feedback regarding the proposed activities prior to the submission of a Substantial Amendment to the PY22 Annual Action Plan. The comment period is March 5 to April 5; a full draft of the Amended PY22 Annual Action Plan is available for review at the City Secretary’s Office and the New Braunfels Public Library, and information is also available on the City’s “CDBG Program” website during this timeframe. A public hearing will be hosted on March 13 during the regular City Council meeting, and it is anticipated that the finalized amended plan will be presented to City Council for approval on April 10. If approved, the Amended PY22 Annual Action Plan will be delivered to HUD no later than April 11, 2023.
ISSUE:
Not applicable.
FISCAL IMPACT:
There is no direct fiscal impact to the City for the additional recommended activities as this is an allocation of federal funding.
Recommendation
RECOMMENDATION:
No Council action is required as this is a public hearing to allow citizens to make comments regarding a Substantial Amendment to the Program Year 2022 Annual Action Plan for the Community Development Block Grant provided by the U.S. Department of Housing and Urban Development.