Presenter/Contact
Presenter
Jennifer Gates, Grants Coordinator
Contact Info
(830) 221-4383 - JGates@nbtexas.org
Subject Header
SUBJECT:
Title
Approval for the submission of the Community Development Block Grant Annual Action Plan, and associated funding recommendations, for Program Year 2019 to the U.S. Department of Housing and Urban Development.
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BACKGROUND / RATIONALE:
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 recipients 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.
In accordance with CDBG funding requirements, the City is preparing to submit the Annual Action Plan to HUD. The Annual 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 HUD Program Year, thereby furthering the goals of the HUD-approved Consolidated Plan, a five-year strategic planning document. After submission of the Annual Action Plan, projects and programs are then implemented in accordance with the approved one-year budget and activities.
The City’s allocation for Program Year (PY) 2019 is $393,910 and will begin October 1, 2019. Of the total funding amount, up to 15 percent ($59,086.50) can be allocated for public service activities, 20 percent ($78,782) for program administration, and the remaining 65 percent ($256,041.50) is to be used for housing and public facilities projects as per HUD CDBG requirements. Any additional funds, including from previous Program Years, are retained in the U.S. Treasury to be utilized by the City at a future date in accordance with timeliness requirements and project/program eligibility.
The Community Development Advisory Committee (CDAC) is composed of nine citizens of New Braunfels who have applied and been approved by City Council to serve in an advisory capacity on matters relating to the CDBG Program including reviewing 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 Annual Action Plan.
After previous extensive review and discussion, CDAC members met on April 10 to publicly rank the applications and consider funding allocations for CDBG Program Year 2019. Recommendations for funding were based upon factors such as how the program/project will benefit LMI 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.
The following allocations are being recommended by CDAC. As the table illustrates, there is approximately $100,000 in additional available funding. These funds are earmarked for housing/public facilities projects.
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 Annual Action Plan. The comment period for CDBG Program Year 2019 was from June 11 to July 12; a full draft of the Annual Action Plan was available for review at the City Secretary’s Office and the New Braunfels Public Library, and information was also available on the City’s Community Development - CDBG Program website during this timeframe. The first public hearing was held on June 17 at the Westside Community Center and the second public hearing was on June 24 during the regular City Council meeting.
No comments were received during the public comment period, therefore, upon receipt of City Council approval, the finalized Annual Action Plan will be delivered to HUD no later than August 16, 2019.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
Strategic Priorities |
20. Protect the integrity of our neighborhoods. |
FISCAL IMPACT:
There is no direct fiscal impact to the City. The program is fully supported by federal dollars.
Recommendation
COMMITTEE RECOMMENDATION:
The Community Development Advisory Committee (CDAC) has approved the above-referenced recommendations for City Council consideration.
STAFF RECOMMENDATION:
Staff recommends approval for the submission of the Community Development Block Grant Annual Action Plan, and associated funding recommendations, for Program Year 2019 to the U.S. Department of Housing and Urban Development.