|
Item 2.
|
| City Council Regular | |
| Date: | 04/26/2021 |
| Title: | Public Hearing & Action on Annual Action Plan and CDBG and HOME Budget Allocations |
| Presented by: | Brenda Beckett |
| Department: | Planning & Community Services |
| Presentation: | Yes |
RECOMMENDATION
City staff and the Community Development (CD) Board recommend that the City Council conduct a public hearing and approve the FY2021-2022 Annual Action Plan and budget allocations for Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) program.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City of Billings has been a recipient of CDBG funds since the mid-1970s and HOME funds since the early 1990s (over $47 million). These funds have been provided and monitored by the federal government and must be primarily targeted to address community affordable housing for low income citizens and poverty-impact needs in Billings.
To allocate CDBG and HOME resources, the Community Development Division staff and Board members facilitated an extensive process to gather public input on the use of federal funds. Applications were available at the beginning of December and due at the end of January. Applications were then forwarded to the Community Development Board and recommendations were prepared for City Council consideration. The Community Development Board prepared recommendations for the use of CDBG and HOME funds on April 6 during the Board’s routine monthly meeting. Staff facilitated a 30-day public comment period, the City Council will take action, and the Annual Action Plan will be submitted to HUD by May 15.
Projects proposed are consistent with the goals and priorities of the five-year Consolidated Plan for the use of CDBG and HOME resources in Billings. The following Consolidated Plan strategies were approved by the City Council in May 2020 and they address Billings’ housing and community development needs:
To allocate CDBG and HOME resources, the Community Development Division staff and Board members facilitated an extensive process to gather public input on the use of federal funds. Applications were available at the beginning of December and due at the end of January. Applications were then forwarded to the Community Development Board and recommendations were prepared for City Council consideration. The Community Development Board prepared recommendations for the use of CDBG and HOME funds on April 6 during the Board’s routine monthly meeting. Staff facilitated a 30-day public comment period, the City Council will take action, and the Annual Action Plan will be submitted to HUD by May 15.
Projects proposed are consistent with the goals and priorities of the five-year Consolidated Plan for the use of CDBG and HOME resources in Billings. The following Consolidated Plan strategies were approved by the City Council in May 2020 and they address Billings’ housing and community development needs:
- Create, preserve, and expand affordable housing options
- Neighborhood Revitalization: Foreclosures
- Impact Poverty
STAKEHOLDERS
Stakeholders for CDBG and HOME programs include:
- Program Recipients - The City serves low income households through a variety of affordable housing programs such as home repair, home buyer, etc. Full descriptions of available programs can be found online at www.BillingsMT.gov/comdev.
- The Community Development Board - As an advisory body to the City Council, the Board provides detailed oversight to both the CDBG and HOME programs throughout the year. The Board also facilitates an extensive public input process to prepare recommendations for the City Council consideration. Six of nine total Community Development Board members are representatives of low-income neighborhoods either by residence or task force delegation, ensuring low-income citizen involvement of planning and allocation processes.
- Neighborhood Task Forces - Task forces have historically been consulted regarding housing and neighborhood programs relative to community need. The current funding recommendations have not changed over the past several years as far as programs but CD staff is providing the information on this year's recommendations and programs to the neighborhood task force leadership during the public comment period.
- Non-Profit Organizations - Community organizations serving those experiencing poverty are supported by the Billings Metro VISTA Project. AmeriCorps VISTA members assist in the provision of needed services to those in need.
ALTERNATIVES
City Council may:
- Hold a public hearing and approve the Annual Action Plan, and the allocation of CDBG and HOME funding as recommended by Staff and the Community Development Board.
- Hold a public hearing and approve the Annual Action Plan and the allocation of CDBG and HOME funding based on alternative funding strategies as determined by the City Council.
- Not hold a public hearing and not approve the Annual Action Plan and the allocation of CDBG and HOME funding and return funding to HUD.
FISCAL EFFECTS
The City of Billings has been awarded $645,143 in new CDBG and $334,548 in HOME funding for use in affordable housing and other projects benefiting low income residents for FY2021-2022. Additional CDBG and HOME funding is anticipated through loan repayments in programs such as First Time Home Buyer and Housing Rehabilitation. The Corporation for National and Community Service has awarded the City of Billings $466,289 in federal funds to support the Billings Metro VISTA Project contingent on the City’s CDBG allocation supporting the program.
The City of Billings has also been awarded over $900,000 in CDBG-CV funding through the CARES Act. The CDBG-CV allocation application and recommendation process has begun. Staff anticipates bringing a substantial amendment to the FY2020 Annual Action Plan to the City Council to allocate this funding in late July.
Allocation recommendations conform to pre-determined spending requirements on several categories including: CDBG and HOME administration caps (maximum of 20% and 10% of new funding respectively); and public service caps (up to 15% of new CDBG funding). Changes made out of compliance with federal spending requirements would place the City’s entitlement status for federal funds at risk.
The allocation of funding is restricted by eligibility requirements for CDBG and HOME and must meet pressing citywide community needs as identified in the Consolidated Plan; affordable housing, housing choice, and poverty-impact. HUD policy prohibits the use of federal funds to supplant local government funds on projects communities typically underwrite, regardless of whether federal grant dollars are available.
FY2021-2022 Budget Recommendations
CDBG budget recommendations include the following:
The City of Billings has also been awarded over $900,000 in CDBG-CV funding through the CARES Act. The CDBG-CV allocation application and recommendation process has begun. Staff anticipates bringing a substantial amendment to the FY2020 Annual Action Plan to the City Council to allocate this funding in late July.
Allocation recommendations conform to pre-determined spending requirements on several categories including: CDBG and HOME administration caps (maximum of 20% and 10% of new funding respectively); and public service caps (up to 15% of new CDBG funding). Changes made out of compliance with federal spending requirements would place the City’s entitlement status for federal funds at risk.
The allocation of funding is restricted by eligibility requirements for CDBG and HOME and must meet pressing citywide community needs as identified in the Consolidated Plan; affordable housing, housing choice, and poverty-impact. HUD policy prohibits the use of federal funds to supplant local government funds on projects communities typically underwrite, regardless of whether federal grant dollars are available.
FY2021-2022 Budget Recommendations
CDBG budget recommendations include the following:
- Administration set at the maximum cap; $129,029.
- VISTA program support set at $25,000, which will leverage over $466,000 in grant funds from the Corporation for National and Community Service.
- First Time Home Buyer program funding totaling $166,114
- Housing Rehabilitation program support totaling $75,000.
- Foreclosure Acquisition / Rehabilitation support totaling $250,000.
- Administration set at the maximum cap; $33,455.
- Remaining HOME funds will be allocated to the First Time Homebuyer Loan Program; $301,093.
SUMMARY
City staff and the Community Development Board have made recommendations for CDBG and HOME budgets and the Annual Action Plan is ready for Council adoption. The City Council is asked to consider public input received and make a final decision at this meeting on the Annual Action Plan and accompanying CDBG and HOME budget.
Attachments
- FY2021-2022 Annual Action Plan - Draft
- CDBG & HOME Revenue & Recommendations
- Allocation & Funding History