| ITEM #: 9. DATE: 03/24/2025 AI #:2496 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | FY2025-2026 ACTION PLAN FOR HOUSING & URBAN DEVELOPMENT (HUD) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM |
| STAFF PRESENTER(S): | Christina Panaitescu, Community Partnerships Program Manager |
SUMMARY
Conduct a public hearing to receive input on the draft FY2025-2026 Action Plan for the HUD CDBG program. Comments on the draft plan will be incorporated into the final document, which will be brought to Council for adoption in May.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Collect public comment on the draft FY2025-2026 Action Plan for the HUD CDBG program. (Christina Panaitescu, Community Partnerships Program Manager)
FISCAL IMPACT
Once adopted, the Annual Action Plan will guide how CDBG grant revenue can be expended. CDBG funds do not require a match from the city. The revenues and expenditures associated with this item will be included in the recommended fiscal year 2026 budget in the amount of $426,600.
BACKGROUND AND PREVIOUS ACTIONS
The city of Goodyear began receiving a direct CDBG entitlement in city fiscal year (FY) 2022.
CDBG funds may be used for a variety of activities that meet the needs of low- and moderate-income (LMI) residents and neighborhoods, and vulnerable populations as defined by HUD. Eligible activities fall into four broad categories:
At a February 10, 2025, work session, Council directed that eighty percent (80%) of the FY2025-2026 CDBG entitlement be passed through to the Valley of the Sun YMCA as a subrecipient to expand the Southwest Valley YMCA early learning center program. A portion of that allocation, not to exceed 15% of the city’s total entitlement, may be made available for use on public services such as teacher salaries. 20% of the city’s total entitlement will be retained for program administration. The actual amounts will be included in the final plan, when allocations have been officially communicated by HUD.
CDBG funds may be used for a variety of activities that meet the needs of low- and moderate-income (LMI) residents and neighborhoods, and vulnerable populations as defined by HUD. Eligible activities fall into four broad categories:
- Community Facilities and Infrastructure
- Community Services and Programs
- Economic Development
- Quality Affordable Housing
- Providing Decent Housing,
- Providing a Suitable Living Environment, and
- Expanding Economic Opportunities.
At a February 10, 2025, work session, Council directed that eighty percent (80%) of the FY2025-2026 CDBG entitlement be passed through to the Valley of the Sun YMCA as a subrecipient to expand the Southwest Valley YMCA early learning center program. A portion of that allocation, not to exceed 15% of the city’s total entitlement, may be made available for use on public services such as teacher salaries. 20% of the city’s total entitlement will be retained for program administration. The actual amounts will be included in the final plan, when allocations have been officially communicated by HUD.
STAFF ANALYSIS
Although specific award amounts have not yet been communicated by HUD, best practice dictates using the previous year's award for planning purposes. Goodyear's FY2024 entitlement was $426,647 (previously misstated as $397,718). As the actual allocation could be greater or less than the FY2024 entitlement, any activity selected should be able to accommodate a shortfall or be adapted to a surplus.
CDBG is a complex grant program and requires administration and oversight. Examples of administrative expenses include: those related to compliance with federal regulations, promoting the principles of fair housing, assessing neighborhood and housing conditions, and the need for human and public services, and establishing application and monitoring systems. Staff recommends we continue to reserve the full 20% allowable for administration, as we have done in the past.
Staff’s further recommendation is to allocate the balance (80% of the entitlement) as a pass-through to the YMCA as a subrecipient for construction and equipment to expand the Southwest Valley YMCA ( SWV Y) early learning center program with up to 15% of the city’s total entitlement available for use on public services such as teacher salaries.
The SWV Y, located on Litchfield Rd & Thomas, in Goodyear, has been a community gathering place since 2004 and serves a unique cross-sector of families in the community. In 2019, the SWV Y created an early learning center using available spaces in the building, to meet a growing community need for quality and affordable childcare. Many of the children enrolled in the early learning and school-age childcare programs are foster children or attend using Arizona Department of Economic Security (DES) Childcare Reimbursement authorizations. As was identified in community assessments conducted by the City, the YMCA also recognizes the need to have an affordable childcare option for working families.
Currently, the early learning classrooms are located in large spaces original to the building that were retrofitted to serve as early learning classrooms. To be able to serve all ages (6 weeks - 5 years), they operate one infant room, a combination toddler room (1-2 years), and a combination preschool room (ages 3-5 years). The mixed-age group classrooms make it difficult to deliver age- and developmentally-appropriate instruction and care to each child. The proposed FY2026 CDBG project is to construct dedicated classrooms for each age group. In addition to providing high-quality spaces designed to meet the developmental and safety needs of young children, this activity will result in increased licensed capacity for the SWV Y’s early learning program, from 57 to 98 -- more than a 70% increase.
To further accommodate the expansion, additional teachers will need to be recruited and retained. This project presents an excellent opportunity to invest in an important resource for Goodyear’s working families and conforms with the city's guiding principles for economic vitality and a safe and vibrant community.
These activities have been incorporated into the draft plan, included as Attachment A, which has been available for public comment beginning March 10 and will remain available for public comment through April 10, following this public hearing on March 24, 2025.
The final plan will be brought to Council for authorization on May 5, 2025, in order to be prepared to meet HUD’s deadline.
CDBG is a complex grant program and requires administration and oversight. Examples of administrative expenses include: those related to compliance with federal regulations, promoting the principles of fair housing, assessing neighborhood and housing conditions, and the need for human and public services, and establishing application and monitoring systems. Staff recommends we continue to reserve the full 20% allowable for administration, as we have done in the past.
Staff’s further recommendation is to allocate the balance (80% of the entitlement) as a pass-through to the YMCA as a subrecipient for construction and equipment to expand the Southwest Valley YMCA ( SWV Y) early learning center program with up to 15% of the city’s total entitlement available for use on public services such as teacher salaries.
The SWV Y, located on Litchfield Rd & Thomas, in Goodyear, has been a community gathering place since 2004 and serves a unique cross-sector of families in the community. In 2019, the SWV Y created an early learning center using available spaces in the building, to meet a growing community need for quality and affordable childcare. Many of the children enrolled in the early learning and school-age childcare programs are foster children or attend using Arizona Department of Economic Security (DES) Childcare Reimbursement authorizations. As was identified in community assessments conducted by the City, the YMCA also recognizes the need to have an affordable childcare option for working families.
Currently, the early learning classrooms are located in large spaces original to the building that were retrofitted to serve as early learning classrooms. To be able to serve all ages (6 weeks - 5 years), they operate one infant room, a combination toddler room (1-2 years), and a combination preschool room (ages 3-5 years). The mixed-age group classrooms make it difficult to deliver age- and developmentally-appropriate instruction and care to each child. The proposed FY2026 CDBG project is to construct dedicated classrooms for each age group. In addition to providing high-quality spaces designed to meet the developmental and safety needs of young children, this activity will result in increased licensed capacity for the SWV Y’s early learning program, from 57 to 98 -- more than a 70% increase.
To further accommodate the expansion, additional teachers will need to be recruited and retained. This project presents an excellent opportunity to invest in an important resource for Goodyear’s working families and conforms with the city's guiding principles for economic vitality and a safe and vibrant community.
These activities have been incorporated into the draft plan, included as Attachment A, which has been available for public comment beginning March 10 and will remain available for public comment through April 10, following this public hearing on March 24, 2025.
The final plan will be brought to Council for authorization on May 5, 2025, in order to be prepared to meet HUD’s deadline.