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City Council Work Session

Meeting Date:

04/09/2024

From:

Kristine Pavlik, Housing and Grants Administrator

Department:

Community Development

Co-Submitter:

TITLE:

Presentation and discussion regarding the City of Flagstaff Community Development Block Grant Program Year 2024 Annual Action Plan and Staff recommendations for Program Year 2024 CDBG funding allocations

DESIRED OUTCOME:

Obtain Council direction on the use of Community Development Block Grant (CDBG) funds for Program Year 2024 Annual Action Plan, required by the US Department of Housing and Urban Development (HUD). The 2024 Annual Action Plan (AAP) is due to be submitted to HUD on May 15, 2024, pending notification of the City's Entitlement Award amount, and is required in order for the City of Flagstaff to maintain its compliance with federal CDBG regulations.

Staff will provide Council with a presentation regarding the 2024 CDBG proposals that were received through the Notice of Funding Available application process. Staff will review each proposal and provide funding recommendations for the 2024 CDBG entitlement and Annual Action Plan. Staff is seeking Council direction regarding CDBG allocations in anticipation of returning on April 16, 2024 for Council approval of a resolution authorizing submission of the AAP to HUD as part of the CDBG process.

EXECUTIVE SUMMARY:

The City of Flagstaff receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) on a “Program Year” basis (July 1 – June 30). The purpose of the CDBG program is to develop viable urban communities through the provision of decent affordable housing, a suitable living environment, and economic opportunity, principally for low and moderate-income persons. In Flagstaff, for 2023, low and moderate-income (80% of the Area Median Income or below) is defined as a 4-member household earning under $72,700.

In order to receive CDBG funding, the City must complete and submit to HUD an Annual Action Plan describing how the anticipated CDBG allocation will address Flagstaff's community needs identified in the 2021-2025 Consolidated Plan, and how funding will be distributed within Flagstaff city limits. The Annual Action Plan is due to HUD on or before May 15, 2024.

The CDBG entitlement amount for Program Year 2024 is unknown at this time, awaiting notice from HUD, however staff is estimating an allocation of around $535,000. In addition to the funding allocated by HUD, the City of Flagstaff is able to include program income and prior year de-obligated funds from prior years to increase funding available for allocation. These additional funds equal $187,313.00. Therefore, an estimated grand total of $722,313.00 is available for CDBG eligible projects for the 2024 Program Year, through the City of Flagstaff Annual Action Plan.

INFORMATION:

Please review the April 16, 2024 Staff Summary in Attachments for additional information.

Attachments

CDBG Council Presentation

Summary of 2024 CDBG Proposals

April 16 Staff Summary