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ITEM 19 |
City Council Memorandum Neighborhood Resources Memo No.
NR24-008
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Date: |
April 15, 2024 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Tadd Wille, Assistant City Manager Leah Powell, Neighborhood Resources Director |
From: |
Karin Bishop, Community Development Senior Program Manager |
Subject: |
Resolution No. 5792 Approving and Authorizing the City Manager to Execute and Submit the Community Development Block Grant Fiscal Year 2024–2025 Annual Action Plan to the United States Department of Housing and Urban Development; Authorizing Execution of All Subrecipient Contracts; and Authorizing the City Manager to Take All Action Necessary or Prudent to Implement the Approved Fiscal Year 2024-2025 Annual Action Plan |
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Proposed Motion: |
Move City Council pass and adopt Resolution No. 5792 approving and authorizing the City Manager or designee to execute and submit the Community Development Block Grant Fiscal Year 2024–2025 Annual Action Plan to the United States Department of Housing and Urban Development; authorizing execution of all subrecipient contracts; and authorizing the City Manager or designee to take all action necessary or prudent to implement the approved FY 2024-2025 Annual Action Plan |
Background: |
Each year, the City of Chandler receives federal Community Development Block Grant (CDBG) funding, administered by the United States Department of Housing and Urban Development (HUD), to develop viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for persons with low and moderate income. Funds support a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. As a prerequisite for receiving CDBG funding, the City of Chandler is required to prepare and submit an Annual Action Plan that serves as the formal application for the use of entitlement funds that are received by the City of Chandler. The Annual Action Plan defines the one-year activities in relationship to the five-year goals and objectives of the 2020-2025 Consolidated Plan approved by City Council on June 25, 2020. From January 22, 2024, through March 13, 2024, the city conducted a public survey to identify community development priorities in Chandler. The survey, which was available in English and Spanish, was distributed widely through mechanisms including the city’s website and social media, public facilities such as libraries, advisory boards and commissions, as well as through community partners including the Chandler Unified School District and non-profit organizations. Responses were received from 98 individuals; a summary is included in the attached Annual Action Plan document. Seventy-two percent of respondents were Chandler homeowners and 18 percent were Chandler renters. Creating and preserving housing for all incomes was identified as the top priority, followed closely by maintaining owner-occupied housing. In compliance with HUD regulations and the Citizen Participation Plan, the city held a 30-day public comment period regarding the draft FY 2024-2025 Annual Action Plan, which included the Housing and Human Services Commission’s funding recommendations based on anticipated formula funding for FY 2024–2025. The public comment period began Friday, March 15, 2024, and ended Sunday, April 14, 2024. In addition, two public hearings were held on March 6, 2024, and on April 10, 2024, to ensure multiple opportunities for input from the community regarding the draft FY 2024–2025 Annual Action Plan. Public comments received during the public comment period will be included in the finalized report submitted to HUD. |
Discussion: |
To date, HUD has not released the FY 2024-2025 annual allocation to Grantees. At HUD’s guidance, the City of Chandler has prepared funding recommendations and a contingency plan based on the anticipated formula funding that it received in the prior fiscal year. A total of $1,343,477 in CDBG funding recommendations are included in the FY 2024-2025 Annual Action Plan. The City will utilize $268,695 for program administration, $201,521 for Public Services, and $873,261 for Capital Projects, Housing, and Neighborhood Revitalization. The contingency plan states that any increase or decrease in CDBG funding for FY 2024-2025 will be applied to the City of Chandler’s Community Navigation and Client Services Program, adhering to the fifteen percent statutory cap for public service activities, and to Homeowner Rehabilitation Program Activities. The formula amount for program administration will also be adjusted based on the total CDBG allocation to the city. The City’s FY 2024-2025 CDBG Program Descriptions and Funding Recommendations are also attached. |
Financial Implications: |
The City of Chandler will utilize CDBG federal entitlement funds to support recommended program activities. No match is required. The City of Chandler pays for services supported by CDBG funds and then submits a request for reimbursement to HUD. |
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