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Community Development Block Grant FY25 Annual Action Plan Amendment #2City of Dubuque City Council CONSENT ITEMS # 6. Copyrighted April 7, 2025 ITEM TITLE: Community Development Block Grant FY25 Annual Action Plan Amendment #2 SUMMARY: City Manager recommending City Council approve the FY2025 Annual Action Plan Amendment #2 Substantial Amendment as recommended by the Community Development Advisory Commission at their March 26, 2025 meeting. RESOLUTION Adopting The Fiscal Year 2025 (Program Year 2024) Community Development Block Grant (CDBG) Annual Action Plan Amendment #2 SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo 3. Resolution 4. FY25 CDBG Annual Action Plan Amendment 2 Page 112 of 386 Dubuque THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Community Development Block Grant (CDBG) FY2025 Annual Action Plan Amendment #2 Substantial Amendment DATE: April 2, 2025 Housing & Community Development Director Alexis Steger is recommending City Council approve the FY2025 Annual Action Plan Amendment #2 Substantial Amendment as recommended by the Community Development Advisory Commission at their March 26, 2025 meeting. I concur with the recommendation and respectfully request Mayor and City Council approval. 1�,A� k�4 S��' Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director Page 113 of 386 THE CITY OF Dubuque DUB El MI-Arce„d a Qly ����, 1 Masterpiece on the Mississippi rP PP 20o2.2o 13 zo17*��zoi9 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director SUBJECT: Community Development Block Grant (CDBG) FY2025 Annual Action Plan Amendment #2 Substantial Amendment DATE: March 31, 2025 Introduction This memorandum transmits information on the Community Development Block Grant (CDBG) FY25 Annual Action Plan Amendment #2 Substantial Amendment. Discussion Due to an unanticipated increase in program income, it's necessary to reallocate funds in our FY25 Amendment #2. FY25 Amendment #2 includes increasing our administration costs. The City of Dubuque is obligated to keep planning and administration expenses below 20% of the CDBG allocation plus an estimated amount of program income. Therefore, when program income increases, the administrative cap increases as well. Typically, 20% is insufficient to cover all administrative costs, making program income a critical resource for funding these costs. Again, due to an unanticipated increase in program income, funding is being reallocated to a Revolving Application Fund. This Revolving Application Fund will allow more projects that benefit our community to be funded with CDBG dollars. This Amendment also includes reallocating funds from Homeowner Rehab to Area Residential Care: Penn Community Living Home. Area Residential Care is currently approved for $41,025 to assist with construction costs to remodel Penn Community Living Home. The scope of work includes remodeling the kitchen and the main floor to make them more accessible as well as some electrical and plumbing work. All updates will make the home more accessible and safer for the residents. Because the bid estimates came back higher than anticipated and the Penn Community Living Home Remodel is considered a Homeowner Rehab project, this Amendment reallocates $13,975 from Homeowner Rehab to Area Residential Care, increasing its total funding to $55,000. This reallocation ensures that the Penn Community Living Home remains a viable project. The Homeowner Rehab allocation will decrease to $160,608, which remains sufficient to complete existing Homeowner Rehab projects. Page 114 of 386 Per our Citizen Participation Plan, the significant increase in program income and reallocation of dollars is considered a Substantial Amendment. Substantial Amendments shall be adopted by Resolution of the City Council after the review and recommendation of the Community Development Advisory Commission. The Community Development Advisory Commission reviewed and unanimously approved this amendment at their March 26, 2025 meeting and recommends City Council adoption of the amended changes. Recommendation I respectfully request the City Council approve the FY2025 Annual Action Plan Amendment #2 Substantial Amendment as recommended by the Community Development Advisory Commission. Prepared by: Mary Bridget Corken-Deutsch, Community Development Specialist Page 115 of 386 Prepared by Mary Bridget Corken-Deutsch Community Dev. Specialist 350 W. 6'h St Dubuque IA 52001 (563) 690-6094 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 108-25 A RESOLUTION ADOPTING THE FISCAL YEAR 2025 (PROGRAM YEAR 2024) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN AMENDMENT #2 Whereas, the City of Dubuque, through a series of public meetings and hearings, proposed a Fiscal Year 2025 (Program Year 2024) Community Development Block Grant Annual Action Plan for inclusion in the City Budget addressing housing and non -housing needs in the community; and Whereas, the Community Development Advisory Commission held a public meeting and public hearing on March 26t', 2025 to receive community input on the Second Amendment to the Fiscal Year 2025 (Program Year 2024) Community Development Block Grant Annual Action Plan; and Whereas, the Community Development Advisory Commission unanimously recommended the City Council approve Amendment #2 Amendment to the Fiscal Year 2024 (Program Year 2024) Community Development Block Grant Annual Action Plan on March 26, 2025. 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 2025 (Program Year 2024) Annual Action Plan Amendment #2, attached hereto and by this reference made a part hereof, is hereby approved. 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 2025 (Program Year 2024) Annual Action Plan Amendment #2 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 7th day of April 2025. Attest Brad vanagh, Mayor Adrienne Breitfelder, City Clerk THE COF Dubuque DAll-Meriea UtB E Cip �.,n Masterpiece on the Mississippi �"p pp 13 zo°''o Zoi7*20*zoi9 Amendment #2 FY 25 ANNUAL PLAN Actual Allocation FOR USE OF PROGRAM YEAR 2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS For Inclusion in the Fiscal Year 2025 City Budget. PREPARED BY THE CITY OF DUBUQUE HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT Page 117 of 386 CITY OF DUBUQUE, IOWA FY 2025 ANNUAL ACTION PLAN FOR THE USE OF PROGRAM YEAR 2024 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 2025 Annual Action Plan with the use of CDBG funds. RESOURCES CDBG Entitlement FY 2025 CDBG Entitlement Unexpended Funds $1,035,721 $1,337,311 Program Income $310,000 Program income projects are based on forecast for loan repayments based on the loan portfolio and program income generated from CDBG funded programs. 111111 r11 0;7 Y�III3�II. ► %lC l PLANNING AND ADMINISTRATION $269,144 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. CDBG Planning, Monitoring, & Budgeting $119,079 Staff support for general management. Oversight and coordination of the Community Development Block Grant program; assures compliance with federal regulations and reporting requirements. Housing & Community Development Administration $150,065 On -going staff support for general management, oversight, and coordination of the Community Development Block Grant housing programs. Priority: High Objective/Outcome: Suitable Living Environment/ Sustainability (SL3) ECONOMIC DEVELOPMENT PROGRAMS $50,000 Microenterprise Assistance Program $50,000 This project creates a microenterprise assistance 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: Economic Opportunities/Accessibility HOUSING DEVELOPMENT PROGRAMS $1,199,727 Area Residential Care: Penn Community Living Home Remodel $55,000 This project provides funding to update the Penn Community Living Home in a residential -unit building that serves primarily low- and moderate- income individuals. Page 118 of 386 National Objective: Low- and Moderate -Income Housing Location: Penn Community Living Home Proposed Accomplishments: 1 Housing unit Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (DH2) Ecumenical Tower Elevator Replacement $312,434 This project provides funding for replacing elevators in a multi -unit residential building that serves primarily low -moderate income individuals. National Objective: Low and Moderate -Income Housing Location: Ecumenical Towers Proposed Accomplishments: 88 People Priority: High Objective/Outcome: Suitable Living Environment/Sustainability (DH2) First Time Home Buyer Program $10,000 Provides 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 $160,608 Provides 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) $160,597 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/Affordability (DH3) Purchase/Rehab/Resale $350,509 Provides funding to address the redevelopment of sub -standard and vacant/abandoned city -owned properties. Properties acquired, rehabbed, and sold to low- and moderate -income homebuyers or to property owners maintaining affordable rents. National Objective: Low and Moderate -Income Housing Location: Citywide Proposed Accomplishments: 3 Housing Units Priority: High Objective/Outcome: Decent Housing/Affordability (DH2) Page 119 of 386 NEIGHBORHOOD and COMMUNITY DEVELOPMENT PROGRAMS $141,464 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 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 after - school programs, open gym, basketball league, music lessons, mobile recreation, scholarships, and summer day camp. National Objective: Low and Moderate -Income Benefit Location: City wide Proposed Accomplishments: 5,730 persons Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) 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) PUBLIC FACILITIES $861,209 Low -Mod Area Park Updates $276,851 New playground equipment at low- and moderate- income area parks based on community input. National Objective: Low- and Moderate -Income Benefit Location: Low- and Moderate Residential Areas Proposed Accomplishments: Park Design/Community Input Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) Lincoln Wellness Project $584,358 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) CDBG Revolving Application Fund $161,487 This fund is available for local nonprofits and organizations to apply for assistance to expand or increase their services or reach to benefit low -and moderate -income people, households, or businesses. National Objective: Low and Moderate -Income Benefit Location: Citywide Grand Total: CDBG Funding Proposed for FY 2025 $2,683,032 Page 120 of 386