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Fiscal Year 2023 Community Development Block Grant Annual Action Plan_HearingCity of Dubuque City Council Meeting Public Hearings # 02. Copyrighted July 5, 2022 ITEM TITLE: Fiscal Year 2023 Community Development Block Grant Annual Action Plan SUMMARY: Proof of publication on notice of public hearing to consider City Council approval of a resolution adopting the proposed Annual Action Plan for inclusion into the City's Fiscal Year 2023 budget, and directing staff to transmit this plan to the U.S. Department of Housing and Urban Development, and City Manager recommending approval. RESOLUTION Adopting the Fiscal Year 2023 (Program Year 2022) Community Development Block Grant (CDBG) Annual Action Plan for inclusion in the city budget SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Public Hearing for FY23 Community Development Block Grant Annual Action Plan-MVM Memo FY23 CDBG AAP Public Hearing -Staff Memo FY23 CDBG AAP Public Hearing - Resolution FY23 CDBG Annual Action Plan Proposal FY23 CDBG Annual Action Plan Budget and Caps Proof of Publication_Uploaded 07.01.22 Type City Manager Memo Staff Memo Resolutions Supporting Documentation Supporting Documentation Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 zai7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: FY 2023 Community Development Block Grant Annual Action Plan DATE: June 29, 2022 Housing & Community Development Director Alexis Steger is recommending City Council approve the resolution adopting the proposed Annual Action Plan for inclusion into the City's FY 2023 budget, and directing staff to transmit this plan to the U.S. Department of Housing and Urban Development. I concur with the recommendation and respectfully request Mayor and City Council approval. 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 THE CITY OF Dubuque D B E 1 I-hmerica .1 U1111 Masterpiece an the Mississippi W,.Zo,Z.Z..... To: Michael C. Van Milligen, City Manager From: Alexis M. Steger, Housing & Community Development Director Subject: FY 2023 Community Development Block Grant Annual Action Plan Date: June 22, 2022 INTRODUCTION The Housing & Community Development Department has submitted the attached Annual Action Plan for the use of Community Development Block Grant funds for review by the City Council at the July 5, 2022, public hearing. This memorandum transmits a resolution to approve the FY 2023 Annual Action Plan. BACKGROUND The City is required to submit an Annual Action Plan to the United States Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) program. The FY 2023 Annual Action Plan provides for use of Community Development Block Grant (CDBG) funds for the final entitlement allocation of $1,050,482 and revenues of $254,192 in program income, fora total of $1,304,674. DISCUSSION During the FY23 Budget Hearings, a plan was presented for adoption to the FY23 budget based on the previous year's formula allocation of $1,102,197 and revenues of $254,192, for a total of $1,356,389. The reduction in formula allocation is reflected in the final Annual Action Plan. Fiscal Year 2023 Annual Action Plan has several programs such as a Microlending Program, Renew DBQ: Low-income Solar Pilot Project, and Aquaponics for Food Deserts, that will meet the 5-year Consolidated Plan Goals as well as the Goals and Priorities of the City Council. The City Council will adopt the plan, and to transmit to the U.S. Department of Housing and Urban Development by July12th as required. RECOMMENDED ACTION I recommend the City Council approve the attached resolution adopting the proposed Annual Action Plan for FY 2023, and direct staff to transmit this plan to the U.S. Department of Housing and Urban Development. Prepared by Maddv Haverland Housing & Community Devel 350 W. 611 St Suite 312 Telephone: (563) 690 6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13'h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 245-22 A RESOLUTION ADOPTING THE FISCAL YEAR 2023 (PROGRAM YEAR 2022) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN FOR APPROVAL Whereas, the City of Dubuque, through a series of public meetings and hearings, proposed a Fiscal Year 2023 (Program Year 2022) Community Development Block Grant Annual Action Plan be approved addressing housing and non -housing needs in the community; and Whereas, the City Council has held a public hearing on the proposed plan on July 5, 2022. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Community Development Block Grant Fiscal Year 2023 (Program Year 2022) Annual Action Plan, attached hereto and by this reference made a part hereof, is hereby adopted. Section 2. The City Manager is hereby authorized to directed staff to prepare and submit to the United States Department of Housing and Urban Development the Fiscal Year 2023 (Program Year 2022) Annual Action Plan with all related documents, for the use of Community Development Block Grant funds based on this adopted budget and execute standard contracts and agreements. Passed, approved and adopted this 5th day of July, 2022. Attest:// Adrienne Breitfelder, City Clerk THE CITY OF Dubuque DUB E AII•America City vax Masterpiece on the Mississippi zoo013 2017*2019 FY 23 ANNUAL PLAN FOR USE OF PROGRAM YEAR 2022 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS For Inclusion in the Fiscal Year 2023 City Budget. This document is subject to revision. PREPARED BY THE CITY OF DUBUQUE HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT CITY OF DUBUQUE, IOWA FY 2023 ANNUAL ACTION PLAN FOR THE USE OF PROGRAM YEAR 2022 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS The City of Dubuque distinguishes between four different but complementary areas of program development in its overall CDBG program: Housing Development, Economic Development, Neighborhood and Community Development and Planning & Administration. The following description of activities summarizes the projects to be completed in the FY 2023 Annual Action Plan with the use of CDBG funds. RESOURCES CDBG Entitlement FY 2023 $1,050,482 Program Income $254,192 Program income projects are based on forecast for loan repayments based on the loan portfolio and program income generated from CDBG funded programs. I� CI DTI 17.E 1� 7 D[.Y1111.t I PLANNING AND ADMINISTRATION $254,000 CDBG regulations limit expenditure on planning and administrative funds to 20% of the current year program income plus the current entitlement. The proposed resources for administration support the plan's current requirements. Housing & Community Development Administration $135,000 On -going staff support for general management, oversight, and coordination of the Community Development Block Grant housing programs. Planning, Monitoring, & Budgeting $119,000 Staff support for general management. Oversight and coordination of the Community Development Block Grant program; assures compliance with federal regulations and reporting requirements. Priority: High Objective/Outcome: Suitable Living Environment/ Sustainability (SL3) ECONOMIC DEVELOPMENT PROGRAMS $29,748 Microloan Program $29,748 This project creates a microloan program that assists low- and moderate -income business owners with mentoring, professional development, and eligible business expenses. Location: Citywide Proposed Accomplishments: 10 Businesses Priority: High Objective/Outcome: HOUSING DEVELOPMENT PROGRAMS $607,820 First Time Home Buyer Program $50,000 Provides for loans to assist low and moderate -income families to purchase their first homes. These funds are used to cover the "entry costs" of homeownership — down payments and closing costs. National Objective: Low and Moderate -Income Housing Location: Citywide Proposed Accomplishments: 10 Households Priority: High Objective/Outcome: Decent Housing/Affordability (DH2) Homeowner Rehabilitation $125,000 1) Residential Rehabilitation Loan Program An on -going program to provide low -interest loans to qualified low and moderate -income homeowners for the rehabilitation of substandard housing units. 2) Home Repair Program Zero % loans to improve conditions of property for income -eligible homeowners 3) Accessibility Zero % and forgivable loans to remove architectural barriers and increase access for people with physical disabilities. National Objective: Low and Moderate -Income Housing Location: Citywide Proposed Accomplishments: 10 Housing Units Priority: High Objective/Outcome: Decent Housing/Affordability (DH2) Lead Hazard Reduction (Lead & Healthy Homes Grant Match) $202,332 Provides activities in support of efforts to reduce lead paint hazards in housing, including assessment and lead paint reduction or abatement, with forgivable loans to low/Moderate-Income residents. This assistance is for two Lead and Healthy Homes grants awarded in 2018 and 2021, running concurrently. National Objective: Low and Moderate -Income Housing Location: Citywide Proposed Accomplishments: 20 Housing units Priority: High Objective/Outcome: Decent Housing/Sustainability (DH3) Housing Rehabilitation Services and Staff $150,578 On -going staff support, including program management, technical assistance, loan packaging and inspection, for the City's rehabilitation loan program. Priority: High Objective/Outcome: Decent Housing/Accessibility (DH1) Renew DBQ: Low-income Solar Pilot Project $80,000 Provides funding to assist low- to moderate -income homeowners to participate in the Renew DBQ solar pilot project. National Objective: Low and Moderate -Income Housing Location: Citywide Proposed Accomplishments: 10 Housing Units Priority: High Objective/Outcome: Decent Housing/Sustainability (DH3) PUBLIC FACILITIES $150,000 Low -Mod Area Park Updates $150,000 New playground equipment at low/mod income area parks based on community input. National Objective: Low and Moderate -Income Benefit Location: Low/Mod Residential Areas Proposed Accomplishments: Park Design/Community Input Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) NEIGHBORHOOD and COMMUNITY DEVELOPMENT PROGRAMS $263,016 Public Services activities are restricted to 15% of the previous year program income and the current year entitlement. Public Service activities in this plan represent 15% of the proposed expenditures. Neighborhood Recreation Programs $132,754 1) Recreation Programs: $82,754 Targeted and enhanced recreation offered in the City's older low -and moderate -income neighborhoods to meet the needs of at -risk youth, promote self-esteem, and build community. Activities include expanded after -school programs, open gym, basketball league, music lessons, playtime for tots, scholarships, swim passes, summer day camp and other recreational programs. 2) Neighborhood Recreation Program Grants: $50,000 Provide funding to organizations delivering recreational and educational services aligned with the neighborhood and recreation development goals of the Leisure Services Department. National Objective: Low and Moderate -Income Benefit Location: City wide Proposed Accomplishments: 5,730 persons Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) Aquaponic System for Food Deserts $96,179 This project provides funding to construct aquaponic systems throughout the City of Dubuque in CDBG census tracts. They will be constructed on vacant/distressed lots to provide a new sense of space in the neighborhood. National Objective: Low and Moderate -Income Benefit Location: Low/Mod Residential Areas Proposed Accomplishments: Priority: High Objective/Outcome: Suitable Living Environment/Sustainability (SL3) Zoning Inspection/Enforcement $8,710 This project provides funding for inspection/enforcement staff services to low/mod income areas for zoning ordinance infractions and to provide support for neighborhood clean-up efforts. National Objective: Low and Moderate -Income Benefit Location: Low/Mod Residential Areas Proposed Accomplishments: 45 Housing Units Objective/Outcome: Decent Housing/Sustainability (DH3) Vacant/Abandoned Building Inspection $5,373 This project provides funding for part-time inspection staff to ensure sustained code compliance in vacant and abandoned buildings in low/mod income areas. National Objective: Low and Moderate -Income Benefit Location: Low/Mod Residential Areas Proposed Accomplishments: 25 Units Objective/Outcome: Decent Housing/Sustainability (DH3) Acquisition Support: Visiting Nurses Association $20,000 This project provides funding for acquisition and permanent equipment purchase to continue services in the neighborhood for healthcare and other social services. National Objective: Low and Moderate -Income Benefit Location: Low/Mod Residential Areas Proposed Accomplishments: 500 People Objective/Outcome: Suitable Living Environment/Accessibility (SL1) Grand Total: CDBG Funding Proposed for FY 2023 $1,304,674 PROJECTED SOURCES Entitlement Recreation Various Program Fees Homeowner Loan Repayments Rental Loan Repayments Infill-Loan Repayments 1 st Time Homeowner Loans Reimbursements -General Sale of Assets - Other Microenterprise Loans Total Program Income Unexpended Funds Previous Fiscal Years Total Administration CDBG Admin. Services and Staff Housing Administration FY 2023 1,050,482 254,192 1,304,674 FY23 AAP 119,000 135,000 Economic Development Microenterprise Assistance Program 29,748 Housing Development T First Time Homebuyer Program 50,000 Homeowner Rehab (Small & Large) 125,000 Rental Rehabilitation Housing Rehabilitation Services and Staff 150,578 Lead Hazard Reduction Lead & Healthy Homes Match (2018 grant) 102,332 Lead & Healthy Homes Match (2021 grant) 100,000 Renew DBQ: Solar Pilot Project 80,000 Neighborhood and Community Development Neighborhood Recreation Program 132,754 Aquaponics 96,179 Visiting Nurses Association 20,000 Zoning Inspection/Enforcement 8,710 Vacant/Abondoned Building Inspection 5,373 Public Facility Projects Low -Mod Income Parks 150,000 Grand Total $ 1,304,674 Contingency COMMUNITY DEVELOPMENT BLOCK GRANT - FY 2023 ANNUAL ACTION PLAN: CAPS 20 % ADMINISTRATIVE CAP FY 23 CDBG Allocation 1,050,482 Current Year Program Income 254,192 Total Available 1,304,674 Cap % 20% Maximum allowed 260,935 ADMIN FY23 AP First Time Homebuyer Program Homeowner Rehab (Small & Large) Rental Rehabilitation Housing Rehabilitation Services and Staff Lead Hazard Reduction Microlending Program (ED) Renew DBQ Solar Project Aquaponics Zoning Inspection/Enforcement Vacant/Abandoned Building Inspection Childcare Windows Replacement Low/Mod Income Park Replacements Neighborhood Recreation Program Purchase of Services Neighborhood Development Services and Staff Housing Administration 119,000 CDBG Admin. Services and Staff 135,000 TOTALS 254,000 Subtract Previous Year Unspent Public Service Obligations TOTAL PROPOSED FOR PUBLIC SERVICE OVER (UNDER) Maximum Cap (6,935) 15 % PUBLIC SERVICE CAP 1,050,482 FY 22 CDBG Allocation 300,000 Previous Year Program Income 1,350,482 Total Available 15% Public Service Cap % 202,572 Maximum allowed PUB SERVICE FY23 AP 132,754 1 132.7541 132,754 (69,818) UNCAPPED FY23 AP 50,000 125,000 150,578 202,332 29,748 80,000 96,179 20,000 8,710 5,373 0 0 150,000 1 917.920 1 STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION I, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 06/24/2022 and for which the charge is 29.22 SuLiscribed to befo'fe me, a Notary Public'�Wand for Dubuque County, Iowa, this 24th day of June, 2022 Notary Puboin and for Dubuque Courhy, Iowa. JANET K. PAPE -61 = Commission Number 199539 My Comm. Exp. DEC 11. 2022 Ad text : CITY OF DUBUQUE, IOWA OFFICIAL NOTICE FISCAL YEAR 2023 ANNUAL ACTION PLAN FOR USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS Notice is hereby given that the Dubuque City Council will conduct a public hearing on Tuesday, July 5, 2022, during a meeting to commence at 6:30 p.m, in the City Council Chambers located on the second floor of the Historic Federal Building, 350 W. 6th Street. The City Council will consider the allocation of formula funding for the Fiscal Year 2023 (Program Year 2022) Annual Action Plan for the Community Development Block Grant (CDBG) Program. Interested parties may examine the contents of the proposed Plan at the City Clerk's Office, City Hall, 50 West 13th Street; and the Housing and Community Development Department, 350 West 6th Street, Suite 312, Dubuque Iowa and the City Website at www.cityofdubuque.org. Written comments may be submitted on or before the time of the public hearing to the City of Dubuque Housing and Community Development Department, 350 W 6th St, Suite 312, Dubuque Iowa 52001 (563-690-6102) or mhaverla@cityofdubuque.org. At said time and place of public hearing all interested citizens and parties will be given an opportunity to be heard for or against said plan. Individuals with limited English proficiency, vision, hearing, or speech impairments requiring special assistance should contact the City Clerk's Office at (563) 589-4100, TDD (563) 690-6678, ctyclerk@cityofdubuque.org as soon as feasible. Deaf or hard -of -hearing individuals can use Relay Iowa by dialing 711 or (800) 735-2942. Published by order of the City Council given on the 6th day of June 2022. Adrienne N. Breitfelder, City Clerk It 6/24