PRESENTER: Presenter
Jennifer Gates, Grants Coordinator
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SUBJECT: Title
Public hearing regarding the U.S. Department of Housing and Urban Development Community Development Block Grant Annual Action Plan and its associated funding recommendations for Program Year 2024.
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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. It is the City’s longstanding practice to distribute CDBG funds throughout the community by providing 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 is preparing to submit its Annual Action Plan (Action Plan) to HUD. The Action Plan, developed according to the City’s Citizen Participation Plan, outlines the projects and programs the City will support with CDBG funds during the upcoming Program Year, thereby furthering the goals of the HUD-approved Consolidated Plan, a five-year strategic planning document. After submission of the Action Plan to HUD for the agency’s review, projects and programs are implemented in accordance with the HUD-approved one-year budget and activities.
The City’s allocation for Program Year 2024 (PY24), effective October 1, 2024, to September 30, 2025, is $495,919. Of the total funding amount, $74,387.85 can be allocated for public service activities, $99,183.80 is eligible for program administration, and a minimum of $322,347.35 must be used for other activities such as housing and public facilities projects as per HUD CDBG requirements.
In accordance with the City’s standard process, a competitive Request for Application was available to nonprofit agencies and other eligible entities from February 13, 2024, to March 19, 2024. Applications were available for 3 categories: Public Services, Public Facilities, and Housing. The City subsequently received 12 applications from 10 local non-profit organizations for a variety of eligible activities totaling approximately $182,306 within the Public Services category, and approximately $468,375 within the Public Facilities ($428,374.50) and Housing ($40,000) categories. The allocation for program administration is not subject to the competitive process as it is provided directly to the City by HUD to reimburse costs associated with the administration of CDBG funding on their behalf. After initial review by the City’s CDBG support staff, all eligible competitive applications were then provided to the City’s Community Development Advisory Committee (CDAC) for review, allowing them to establish PY24 funding recommendations.
CDAC is composed of nine New Braunfels’ citizens who have applied to become a member of the committee and have been approved by City Council to serve in an advisory capacity on matters relating to the CDBG Program. CDAC’s responsibilities include reviewing the competitive applications for funding, hosting agency presentations, and making recommendations for funding allocations to be considered and approved by City Council. Funding allocations are subsequently included in the City’s Action Plan.
After prior extensive review and discussion, CDAC members met on May 1 to publicly rank the applications and form PY24 funding allocations. Additionally, during their regular meeting on June 5, CDAC considered and approved the City’s request to increase the amount of funding for several housing and public facility projects, using a large portion of unallocated CDBG funding from previous program years. All recommendations for funding were based upon factors such as how the program/project will benefit low to middle income residents, availability of funding, past/current performance for organizations who had previously received funding, and the experience and capacity of the agency in managing the proposed program/activity, consideration of other available funding sources for the agency, and direct support of the City’s adopted CDBG 2020-2024 Consolidation Plan and the City’s recently adopted 2024-2029 Strategic Plan.
As such, the following allocations are being recommended by CDAC:
HUD requires a 30-day comment period, and two public hearings prior to submission, allowing for citizens to comment on the information proposed in the PY24 Action Plan; the comment period for CDBG Program Year 2024 is June 10 to July 11. A full draft of the PY24 Action Plan is available for review at the City Secretary’s Office, the New Braunfels Public Library, the New Braunfels Public Library - Westside Branch, and information is also available on the City’s “CDBG Program” website during this timeframe. The first public hearing was hosted on June 18 at the New Braunfels Public Library - Westside Branch; the second public hearing is on July 8 during the regular City Council meeting. It is anticipated that the finalized PY24 Action Plan will be presented to City Council for approval on July 22 and delivered to HUD no later than August 16, 2024.
ISSUE:
Not applicable.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
Support non-profit organizations to ensure low- to moderate-income residents of New Braunfels are provided with a variety of assistance.
FISCAL IMPACT:
There is no direct fiscal impact to the City for the CDBG-funded recommended awards 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 the U.S. Department of Housing and Urban Development Community Development Block Grant Annual Action Plan and its associated funding recommendations for Program Year 2024.