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AGENDA ITEM #: 15.
DATE: 04/26/2021

 
CITY COUNCIL ACTION REPORT
 
SUBJECT: PUBLIC HEARING FOR PY2021-2025 CDBG CONSOLIDATED PLAN AND PY2021 ANNUAL ACTION PLAN
 
STAFF PRESENTER(S): Christina Panaitescu, Grants & Neighborhood Services Supervisor; Jenna Goad, Assistant to the City Manager

OTHER PRESENTER(S):

Martina Kuehl, Kuehl Enterprises LLC

SUMMARY:

Conduct a public hearing to receive input on the draft program year (PY) 2021-2025 Five-Year Consolidated Plan, PY2021 Annual Action Plan and Citizen Participation Plan for the Community Development Block Grant (CDBG) program.

Recommendation:

Conduct a public hearing to collect public comments on the draft plans to be incorporated into the final planning documents, which will be brought to Council for adoption in May. (Christina Panaitescu, Grants & Neighborhood Services Supervisor; Jenna Goad, Assistant to the City Manager)

FISCAL IMPACT:

Once adopted, the Consolidated Plan and Annual Action Plan will restrict how CDBG grant revenue can be expended. CDBG funds do not require a match from the city.

BACKGROUND AND PREVIOUS ACTIONS:

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:
 
  1. Community Facilities and Infrastructure
  2. Community Services and Programs
  3. Economic Development
  4. Quality Affordable Housing

Activities must also address Congress' primary CDBG objective to improve communities, principally for LMI residents by:
  1. Providing Decent Housing,
  2. Providing a Suitable Living Environment, and
  3. Expanding Economic Opportunities.

To date, the city of Goodyear has competed for CDBG funds through the Maricopa Urban County. In 2020, the direction was given to accept HUD's invitation to become a direct recipient (entitlement community) and initiate the planning process to begin receiving funds in city fiscal year (FY) 2022.

These planning documents describe needs, resources, goals, strategies, and objectives to assist Goodyear's low- and moderate-income (LMI) people, households, and neighborhoods as defined by HUD. The majority of the plan is a HUD-required analysis of the existing conditions impacting LMI residents in the city. Data in the plan are generated by HUD through its Comprehensive Housing Affordability Strategy (CHAS) data system and from the US Census Bureau American Community Survey. This analysis informs the development of the priority categories and activities proposed for CDBG funding.

On January 25, 2021, Council approved the CDBG Public Participation Plan which outlined how public feedback would be collected during the development of the CDBG planning documents.

On March 22, 2021, Council directed that the PY2021-2025 Five-Year Consolidated Plan include high and low priority activities and that PY2021 CDBG funds be utilized for the North Subdivision Streetlight project and program administration.

STAFF ANALYSIS

This hearing will include the PY2021-2025 Five-Year Consolidated Plan, PY2021 Annual Action Plan, and Public Participation Plan for the CDBG program. A description of each plan is below.

Public Participation Plan
The Citizen Participation Plan describes policies and procedures for public involvement in the Consolidated Plan process. These policies and procedures have been adhered to during the development of these planning documents.

PY2021-2025 Five-Year Consolidated Plan
The Consolidated Plan summarizes housing, homelessness and community development needs, and the strategies to meet those needs using CDBG funding for the period beginning July 1, 2021, and ending June 30, 2026.

This document is required by HUD and will be updated every five years unless an amendment is needed sooner.

Based on data analysis and public and stakeholder input, the following five broad areas for CDBG- eligible priority activities have been selected to establish the framework for the use of CDBG funding received from HUD for the five-year period covering PY2021-2025:

High-Priority Activities (likely to be funded with CDBG resources during the next five years)
  1. Community Facilities and Infrastructure
  2. Public Services
  3. Program Administration

Low-Priority Activities (may be funded as opportunities arise)
  1. Attainable and Sustainable Housing
  2. Economic Development

CDBG funds may be invested in activities that directly benefit LMI households, LMI neighborhoods, and people with special needs throughout the city, and are not restricted to one specific target area.

In developing the Consolidated Plan, the city must establish five-year goals related to the use of CDBG funds and strategies to improve the delivery system, address lead-based paint hazards, reduce the incidence of poverty, and address barriers to affordable housing development.

PY2021 Annual Action Plan
The Annual Action Plan must describe specific activities the city will fund with its CDBG allocation in the upcoming program year and must correlate with at least one priority activity area indicated in the Five-Year Consolidated Plan.

The PY2021 Annual Action Plan describes the planned uses of $422,807 of CDBG funding for the period beginning July 1, 2021, and ending June 30, 2022.

Based on stakeholder input and the city's current capacity to administer CDBG funds, these funds will be applied toward community facilities and infrastructure and developing the city's CDBG program administration capabilities during the first CDBG program year. Activities in other priority areas identified in the Five-Year Consolidated Plan can be considered in future years.

Community Facilities and Infrastructure ($338,246)
North Subdivisions Streetlight Project – estimated cost $681,245 (after $303,200 awarded through Maricopa Urban County)

Program Administration ($84,561)
Up to 20% of the total CDBG allocation may be retained for administrative activities. Staff recommends setting aside 20% for program administration including:
 
  1. Complying with federal regulations regarding environmental review, federal labor standards, financial management, and procurement, including policies regarding Minority- and Women-owned business enterprises and employment of low- and moderate-income residents;
  2. Promoting the principles of fair housing and educating the community about the dangers of lead-based paint;
  3. Assessing neighborhood conditions to evaluate the benefits of revitalization activities; Assessing the need for human and public services to address the needs of vulnerable populations and Goodyear residents living in poverty; and
  4. Establishing application and monitoring systems.

Drafts of both plans were made available for public comment on the city's website at www.goodyearaz.gov/cdbg beginning on April 1; and will remain open to comment through April 30, 2021.

The Council will consider adopting the final PY2021-2025 Five-Year Consolidated Plan and PY2021 Annual Action Plan at the May 10, 2021, Council meeting, enabling staff to meet the May 15, 2021 submission deadline from HUD.

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