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U.S. Department of Housing & Urban Development (HUD) Environmental reveiw Monitoring Finding ClearanceCity of Dubuque City Council Meeting Consent Items # 16. Copyrighted April 4, 2022 ITEM TITLE: U.S. Department of Housing & Urban Development (HUD) Environmental review Monitoring Finding Clearance SUMMARY: City Manager sharing information from the U.S. Department of Housing & Urban Development (HUD) Environmental review Monitoring Finding Clearance with City Council. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type CDBG Environmental Review Monitoring Results-MVM City Manager Memo Memo Staff Memo Letter from HUD Staff Memo Supporting Documentation THE C Dubuque DUj!BQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 z0i7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: U.S. Department of Housing & Urban Development (HUD) Environmental review Monitoring Finding Clearance DATE: March 30, 2022 Housing & Community Development Director Alexis Steger is sharing information from the U.S. Department of Housing & Urban Development (HUD) Environmental review Monitoring Finding Clearance with City Council. The City of Dubuque Community Development Block Grant funding requires an environmental review for all undertakings/projects. The Environmental Review Monitoring resulted in three (3) findings that required corrective action from the City of Dubuque. The monitoring was completed for prior fiscal years, so one finding had already been addressed and correct by the City prior to the monitoring. The City of Dubuque submitted the corrective actions to HUD for approval. The attached letter is an approval of the City of Dubuque's corrective actions taken, and the closing of the monitoring for environmental review processes. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director Dubuque City of Dubuque THE CHousing &Community AflAmerieaEity Development DUUB FE I11 350 W. 6th Street, Suite 312 I EQUAL TUNING Dubuque, 1A 52001 2007=2012�2013 OPPOR7lJNI7Y Masterpiece on the Mississippi 2017*2019' Office (563) 589-4230 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing & Community Development Director DATE: March 30, 2022 RE: U.S. Department of Housing & Urban Development (HUD) Environmental review Monitoring Finding Clearance BACKGROUND The City of Dubuque Community Development Block Grant funding requires an environmental review for all undertakings/projects. Periodically, HUD will monitor the City of Dubuque's performance in this area. HUD completed a remote monitoring from August 26 to August 31, 2021. DISCUSSION The Environmental Review Monitoring resulted in three (3) findings that required corrective action from the City of Dubuque. The monitoring was completed for prior fiscal years, so one finding had already been addressed and correct by the City prior to the monitoring. A summary of findings and corrective actions: Tier 1 environmental review had not been marked "completed" in the system prior to the Mayor's signature on the certification of compliance. Corrective Action: HEROS, a system for completing environmental reviews, was not fully used by the City of Dubuque for Fiscal Year 2019 and 2020, so a paper copy of the review was completed and available. HUD wants the City of Dubuque to only use the HEROS system, although not required by regulations. The City agrees to only use the HEROS system for Environmental Reviews, since this was already in the process and procedures starting in Fiscal Year 2021. The process and procedures manual was updated to make the use of HEROS a requirement. 2. The format for environment reviews was confusing in regards to the format of statutory checklists. The organization and maintenance of environmental review records was fractured. Corrective Action: The City of Dubuque uses the HUD provided system, HERDS, to maintain and organize environmental review records starting in Fiscal Year 2021. Fiscal Year 2019 and 2020 were monitored and had fractured processes. The City of Dubuque had already noted these issues and moved to HERDS. The process and procedures manual for CDBG was service People Integrity Responsibility Innovation Teamwork updated to reflect specific organizational structure of environmental review records and staff assigned to each step in the process. 3. An environmental review record was not completed prior to a homeowner rehabilitation and the copy of the environmental review for a tuck -pointing project was missing. Two activities that were exempt from the environmental review process did not have the exempt documentation in the file. Corrective Action: The City retroactively completed the required environmental reviews and updated files per HUDs instructions. Additional training was provided to City Staff and several layers of oversight on environmental reviews were put into place and documented in the policy and procedures manual to prevent a single employee from moving a project forward prior to an environmental review being completed. The City of Dubuque submitted the corrective actions to HUD for approval. The attached letter is an approval of the City of Dubuque's corrective actions taken, and the closing of the monitoring for environmental review processes. REQUESTED ACTION No action is requested by the City Council. This memorandum is for information purposes only. Cc: Teri Goodmann, Assistant City Manager Maddy Haverland, Community Development Specialist Service People Integrity Responsibility Innovation Teamwork U.S. Department of Housing and Urban Development Omaha Field Office Edward Zorinsky Federal Building 1616 Capitol Avenue, Suite 329 Omaha, Nebraska 68102-4908 March 24, 2022 SENT VIA E-MAIL Alexis Steger, Director Housing and Community Development City of Dubuque 350 W 6th Street, Suite 312 Dubuque, Iowa 52001 Dear Ms. Steger: SUBJECT: Closing of Environmental Monitoring Findings HUD has reviewed the City of Dubuque's submission made on or about January 11, 2022, in response to monitoring conducted by the U.S. Department of Housing and Urban Development (HUD). HUD's monitoring was conducted August 26-31, 2021 by HUD Field Environmental Officer Beth Held (FEO Held). The City's submission responded to the three environmental Findings and required Corrective Actions. All Findings are now closed. Finding #1 The City certified to HUD that environmental compliance had been achieved for CDBG projects identified in the Annual Action Plan for fiscal years 2019 and 2020, when, in fact, the environmental reviews for fiscal year 2020 had not been completed, and the Tier 1 review for 2019 had only been partially completed in HEROS. Corrective Action Within sixty (60) days of receipt of this report, the City is advised to complete the following actions: (a) Describe in writing the specific management oversight measures to be taken to avoid a recurrence of this deficiency. The measures must describe the internal procedures and controls that will be implemented to ensure that projects for which a release of funds is required will not be submitted to HUD, nor notification to the public made regarding the intent to request the release of funds, until the environmental review for an activity or project is complete. The procedures should convey an understanding of the application of tiering procedures. (b) The City must continue to use HEROS now and henceforth for performing and approving environmental reviews for all activities and projects, including where tiering procedures are used. (HERDS is the HUD Environmental Review Online System, available at https://heros.hud.gov/). HEROS could help the City ensure that the correct documentation for related laws and authorities is present and may offer additional structure and background for reviews. Dubuque Response: The City has revised its CDBG Policies and Procedures. The City is now familiar with the HEROS Environmental Review program and will perform reviews in HEROS for all future projects. Finding #2 The organization and maintenance of the Environmental Review Records (ERR) did not demonstrate an overall clear and concise written record of the process and compliance determinations. Key component elements were missing from certain ERRs that contributed to a confusing format in the statutory checklists. Corrective Action Within sixty (60) days of the date of this report, the City is advised to complete the following actions: (a) Describe the city's internal management and administrative structure for conducting the environmental review process. The structure should identify the staff and their responsibilities associated with performing environmental reviews. (b) Describe the recordkeeping procedures for maintaining Environmental Review Records including support documentation, the RROF process, approvals and other required components. (c) Describe how mitigation measures and environmental conditions that stem from the environmental review will be continuously tracked and monitored from decision -making through project completion. (d) Describe how environmental compliance will be re-evaluated when new circumstances or a substantial change occurs which may affect the project or have a bearing on environmental impacts. Dubuque Response: The City submitted a new staff organizational structure and revised recordkeeping protocols as requested, which was approved by FEO Held. Finding #3 An environmental review record was not completed for a property in the 2020 Homeowner Rehab Program prior to the commitment of HUD funding nor for the St Mark's Community Center Tuckpointing Project (the City furnished the Section 106 review but could not locate the ERR). No ERR was made for two Exempt activities. Corrective Action Within sixty (60) days of receipt of this report, the City is advised to complete the following actions: (a) The City must retroactively complete environmental reviews for IDIS # 1220 and St. Mark's Community Center (IDIS # 1154) and submit them to HUD for review and approval. If adverse effects are identified, the City must complete mitigation using non -HUD funds. If an adverse effect cannot be mitigated, the City must repay the HUD fund to the project(s). The project descriptions and all support documentation must be included in the city's submittal to HUD. For the purpose of this corrective action, the City should complete the environmental reviews outside of HEROS. The City should not carry out the public notice and Request for Release of Funds process for these two projects. (b) Describe the internal procedural changes the City has made to prevent a recurrence of the deficiency. (c) City staff performing reviews must complete HUD online training and obtain certification for all training modules found in the adult learning platform Web -Based Instructional System for Environmental Review (WISER). WISER is available at https://www.hudexchange.info/trainings/wiser/. (d) Commit to one or more staff attending HUD environmental trainings offered in HUD Region 7 and Region 8 in 2022. Dubuque Response: The City submitted the reviews to HUD and were approved by FEO Held. City staff completed the WISER modules and received passing certificates for each module. Staff will continue to monitor the WISER site for additional training opportunities and attend any upcoming virtual training sessions offered by the Region 7 office. The City of Dubuque's letter and submissions are sufficient to close the above Findings. Should you have questions, please contact Beth Held, Field Environmental Officer, at Beth.Held@hud.gov or 913-321-9732. Thank you for your cooperation. Sincerely, Francis T Severin 2022.03.24 06:54:29 - 05'00' Francis "Tim" Severin, Director Community Planning and Development Division