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GARLAND
POLICY REPORT
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Work Session Item 4.b. |
| City Council Work Session Agenda |
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| ISSUE |
| Information is being provided for Council review regarding the allocation of the Community Development Block Grant (CDBG) funding, HOME Infill Partnership Grant (HOME) funding, Emergency Solutions Grant (ESG) funding, and the one-time allocation of HOME American Rescue Plan Funding (HOME-ARP). |
| OPTIONS |
| The Council was provided information on submitted grant applications for the CDBG, HOME Infill, ESG, and HOME-ARP Programs at the June 5, 2023 work session. A public hearing was held on June 6th, 2023. This item will be brought back before the Council on July 10, 2023, for final discussion with formal approval scheduled for July 11, 2023. |
| BACKGROUND |
The City will receive the following new funding from the Department of Housing and Urban Development for the 2023-2024 program year:
CDBG: $2,124,930
HOME: $ 741,993
ESG: $ 188,612
HOME-ARP: $2,541,737
For all Federal grant applications, the proposed budget for the fiscal year 2023-2024 must be submitted to the Department of Housing and Urban Development by August 11, 2023. There have been several public input meetings to solicit feedback on the proposed use of funding.
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| CONSIDERATION |
A total of $318,740 is available for CDBG Public Services category. HUD sets a maximum limit of 15% of provided entitlement funding that can be used for public services. In addition, approximately $1,888,097 in CDBG Project funding is available for allocation to City projects ($1,381,205 in new funding and $506,893 in reprogrammed funding). HUD regulations limit CDBG monies used for administrative and planning to no more than 20% of the entitlement funding provided. The Community Development Department will use $424,986 in CDBG administrative funding to manage the grant programs.
HOME entitlement funding available totals $741,993. HUD regulations require that 15% of the HOME funding be used to support a Community Housing Development Organization (CHDO). HUD allows up to 10% of funding provided to be used for the program's administration. Community Development will use $74,199 for program administration, and the remaining 75% will be used for the development of single-family housing.
The total funding available for the ESG program is $188,612. The Community Development Department will use $14,146 in ESG funding to administer the program. Other ESG-funded categories include Shelter Operations and Street Outreach in the amount of $112,919 and Rapid Rehousing/Homeless Prevention in the amount of $61,547.
The HOME-ARP Program is a one-time allocation of funding in the amount of $2,541,737. Previously, during the March 20th work session meeting, Council approved categories of funding as follows: Supportive Services for $648,143 and Rental Housing Development for $1,512,334. The remaining $381,260 in administration funding will be used by the Community Development Department to administer the grant.
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