ITEM #: 2. DATE: 02/13/2023 AI #:1233 |
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CITY COUNCIL ACTION REPORT
SUBJECT: |
FY2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) |
STAFF PRESENTER(S): |
Christina Panaitescu, Grants & Neighborhood Services Supervisor |
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Summary |
Staff is seeking Council direction regarding eligible activities for the investment of FY2024 CDBG entitlement funds. (Christina Panaitescu, Grants & Neighborhood Services Supervisor) |
FISCAL IMPACT |
The Annual Action Plan, to be submitted to the federal department of Housing and Urban Development (HUD) for acceptance, will define how Goodyear intends to invest its FY2024 CDBG entitlement funds. |
BACKGROUND AND PREVIOUS ACTIONS |
In May 2021, the City submitted a five-year consolidated plan and first year action plan to HUD, establishing the priorities for investing CDBG entitlement funds from the federal government. Each May, the City is required to submit an annual action plan, specifying how it intends to allocate CDBG funds in the upcoming fiscal year. In FY2022, the City leveraged CDBG funds to replace existing streetlights with improved LED fixtures and add bollard lighting along a neighborhood pathway to improve safety in North Subdivisions. In FY2023, the City is utilizing its CDBG funds to assist a local domestic violence shelter, New Life Center, with renovating their onsite child development center. Projects (called activities) must benefit low-to-moderate-income (LMI) Goodyear households or neighborhoods, or serve specific populations who are presumed to be LMI, and have to fit in one of the following eligible priority areas which were prioritized in the consolidated plan: program administration, community facilities and improvements, and public services. Activities identified as low priority, attainable and sustainable housing or eligible economic development projects, are also eligible if an exceptional opportunity were to present itself. To prepare for this work session, staff has consulted city department directors, local broadband providers, and members of the Faith & Community Roundtable, and hosted a public meeting, seeking suggestions for eligible projects. No projects were suggested by local broadband providers. Eligible activity suggestions that were raised by stakeholders centered around community facilities and improvements. |
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 FY2023 entitlement was $426,876. As the actual allocation could be greater or less than the FY2023 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: activities related to compliance with federal regulations, promoting the principles of fair housing, assessing neighborhood conditions and the need for human and public services to address the needs of vulnerable populations, and establishing application and monitoring systems. Staff recommends the city reserve the full 20% allowable for administration ($85,375) and intends to apply CDBG funds toward phase III of the Community & Neighborhood Services Master Plan, a housing assessment to be conducted in FY2024. That would leave a balance of $341,501 available for activities that meet the national objective and align with consolidated plan priorities. Given the anticipated award amount and the administrative burdens that accompany these funds, at this time, staff recommends retaining a focus on large, capital, community improvement-type projects, rather than public services, attainable and sustainable housing, or economic development initiatives. Staff’s recommendation is to allocate the balance (80% of the entitlement) towards funding for Park enhancements at Palmateer Park in Historic Goodyear - Total Project Costs: $341,500. This project would include the construction of a ramada, addition of shade structure lighting and enhancement of playground equipment to enable accessibility for small children and individuals living with a disability, as well as, offer activities for older children and teenagers. (This project is eligible because the service area is LMI.) |
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