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Fiscal Year 2024 Community Development Block Grant Annual Action PlanCity of Dubuque City Council Meeting Consent Items # 05. Copyrighted April 3, 2023 ITEM TITLE: Fiscal Year 2024 Community Development Block Grant Annual Action Plan SUMMARY: City Manager recommending City Council approve the attached resolution adopting the proposed Annual Action Plan for FY 2024 as recommended by the Community Development Advisory Commission and direct staff to transmit this plan to the U.S. Department of Housing and Urban Development as required. RESOLUTION Adopting the Fiscal Year 2024 (Program Year 2023) Community Development Block Grant (CDBG) Annual Action Plan for Approval SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo FY24 Community Development Block Grant Annual Staff Memo Action Plan Memo FY24 Community Development Block Grant Annual Resolutions Action Plan Resolution FY24 Community Development Block Grant Annual Supporting Documentation Action Plan THE CITY OF Dubuque DUB TEE1. All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: FY 2024 Community Development Block Grant Annual Action Plan DATE: March 23, 2023 Housing & Community Development Director Alexis Steger is recommending City Council approve the attached resolution adopting the proposed Annual Action Plan for FY 2024 as recommended by the Community Development Advisory Commission and direct staff to transmit this plan to the U.S. Department of Housing and Urban Development as required. The Community Development Advisory Commission reviewed this FY24 Annual Action Plan and recommends City Council adoption of the changes. I concur with the recommendation and respectfully request Mayor and City Council approval. k�4 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 2024 Community Development Block Grant Annual Action Plan Date: March 20, 2023 INTRODUCTION The Housing & Community Development Department is submitting the attached Annual Action Plan for the use of Community Development Block Grant funds to adopt by the City Council at the April 3, 2023 meeting. This memorandum transmits a resolution to approve the FY 2024 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. During the FY24 Budget Hearing, a plan was presented for adoption to the FY24 budget based on the previous year's formula entitlement allocation of $1,050,482 and revenues of $254,192 in program income, for a total of $1,304,674. Our actual allocation shows a reduction in formula entitlement allocation and is reflected in the final Annual Action Plan. DISCUSSION The final FY 2024 Annual Action Plan provides for use of Community Development Block Grant (CDBG) funds for the actual entitlement allocation of $1,031,452 and revenues of $273,222 in program income, for a total of $1,304,674. The reduction in formula entitlement allocation will not affect activities because our projected revenue in program income increased. Fiscal Year 2024 Annual Action Plan has several programs such as a Microenterprise Assistance Program, First Time Homebuyer, Homeowner Rehab, Neighborhood Recreation Program, and Lincoln Wellness Project, that will meet the 5-year Consolidated Plan Goals as well as the Goals and Priorities of the City Council. Per our Citizen Participation Plan, this final FY 24 Annual Action Plan is considered a "non -substantial" amendment. Therefore, non -substantial amendments shall be adopted by Resolution of the City Council after the review and recommendation of the Community Development Commission. The Community Development Advisory Commission reviewed this FY24 Annual Action Plan and recommends City Council adoption of the changes. RECOMMENDED ACTION I recommend the City Council approve the attached resolution adopting the proposed Annual Action Plan for FY 2024 as recommended by the Community Development Advisory Commission and direct staff to transmit this plan to the U.S. Department of Housing and Urban Development as required. Prepared by: Mary Bridget Corken-Deutsch, Community Development Specialist Prepared by Mary Bridget Corken Deutsch. Housing & Community Devel., 350 W. &h St. Suite 312 (563) 690-6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 80-23 A RESOLUTION ADOPTING THE FISCAL YEAR 2024 (PROGRAM YEAR 2023) 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 2024 (Program Year 2023) Community Development Block Grant Annual Action Plan be approved addressing housing and non -housing needs in the community; and Whereas, the Community Development Advisory Commission held a public hearing on January 18th, 2023 to receive community input on the Fiscal Year 2024 (Program Year 2023) Community Development Block Grant Annual Action Plan; and Whereas, the Community Development Advisory Commission unanimously recommended the City Council approve Fiscal Year 2024 (Program Year 2023) Community Development Block Grant Annual Action Plan on January 18th, 2023. 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 2024 (Program Year 2023) Annual Action Plan, attached hereto and by this reference made a part hereof, is hereby adopted. Section 2. The City Manager or his designee of the City of Dubuque is hereby authorized to direct staff to prepare and submit to the United States Department of Housing and Urban Development the Fiscal Year 2024 (Program Year 2023) 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 3rd day of April, 2023. Attest: Adrienne N. Breitfelder, ity Clerk THE COF+ Dubuque DUtBE All-America GiIY Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 FY 24 ANNUAL PLAN FOR USE OF PROGRAM YEAR 2023 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS For Inclusion in the Fiscal Year 2024 City Budget. This document is subject to revision. PREPARED BY THE CITY OF DUBUQUE HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT CITY OF DUBUQUE, IOWA FY 2024 ANNUAL ACTION PLAN FOR THE USE OF PROGRAM YEAR 2023 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 2024 Annual Action Plan with the use of CDBG funds. RESOURCES CDBG Entitlement FY 2024 $1,031,452 Program Income $273,222 Program income projects are based on forecast for loan repayments based on the loan portfolio and program income generated from CDBG funded programs. TOTAL RESOURCES $1,304,674 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 $50,000 Microloan Program $50,000 This project creates a microloan program that assists low- and moderate -income business owners with mentoring, professional development, and eligible business expenses. National Objective: Low and Moderate -Income Benefit Location: Citywide Proposed Accomplishments: 10 Businesses Priority: High Objective/Outcome: Economic Opportunities/Accessibility (EA1) HOUSING DEVELOPMENT PROGRAMS $425,578 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: Proposed Accomplishments: Priority: Objective/Outcome: Citywide 10 Households High Decent Housing/Affordability (DH2) Homeowner Rehabilitation $125,000 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. National Objective: Low and Moderate -Income Housing Location: Citywide Proposed Accomplishments: 10 Housing Units Priority: High Objective/Outcome: Decent Housing/Affordability (DH2) 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) Lead Hazard Reduction (Lead & Healthy Homes Grant Match) $100,000 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 -and moderate -income residents. This assistance is for the Lead and Healthy Homes grant awarded in 2021. National Objective: Low and Moderate -Income Housing Location: Citywide Proposed Accomplishments: 20 Housing units Priority: High Objective/Outcome: Decent Housing/Sustainability (DH3) NEIGHBORHOOD and COMMUNITY DEVELOPMENT PROGRAMS $161,464 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) Visiting Nurses Association: Acquisition Support $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) Zoning Inspection/Enforcement $8,710 This project provides funding for inspection/enforcement staff services to low -and moderate -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) PUBLIC FACILITIES $413,632 Lincoln Wellness Project $263,632 New playground equipment at low -and moderate -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) Low -Mod Area Park Updates $150,000 New playground equipment at low -and moderate -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) Grand Total: CDBG Funding Proposed for FY 2024 $1,304,674