PRESENTER: Presenter
Jennifer Gates, Grants Coordinator
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SUBJECT: Title
Public hearing regarding the Program Year 2023 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 since June 2020 - $243,102 during PY19, and $423,819 during PY22 - 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. All CDBG-CV funding must be spent by June 2026.
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 2023 (PY23) of the 2020-2024 Consolidated Plan. CDBG program years operate from October 1 to the following September 30. As the program is ongoing, the PY23 CAPER also reflects CDBG-CV expenditures through September 30, 2024.
For PY23, the City received an allocation of $458,880, of which $68,832 was utilized for public service activities, $91,776 was used for program administration, and $298,272 supported housing and public facility activities. Additionally, $109,900 of previously unallocated CDBG funding was allotted for the operation of a City-managed Minor Home Repair Program. The PY23 Action Plan was approved by HUD in September 2023, allowing the program year to begin on October 1, 2023, as per the standard CDBG schedule.
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 PY23 is November 18 to December 4, 2024; the public hearing is on November 25 during the City Council meeting. A full draft of the report is available for review on the City’s website, and during business hours at the following locations in New Braunfels, Texas: New Braunfels City Hall (550 Landa Street), New Braunfels Public Library (700 E. Common Street), and the New Braunfels Public Library - Westside Branch (2910 S. IH-35 Frontage Road). As required by the granting agency, the final CAPER will be delivered to HUD no later than December 29, 2024.
ISSUE:
The City’s adopted 2024-2029 Strategic Plan includes an objective pertaining to fiscal sustainability, e.g. ensuring compliance with HUD’s reporting requirements for CDBG funding as described within this agenda item.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
Considering statutory and market-based factors, continue to diversify revenue streams to support long-term fiscal sustainability of the Organization.
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 PY23 CAPER for the City’s HUD-funded CDBG and CDBG-CV Grant programs.