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FY 2002 Annual Act Pl Amend 2MEMORANDUM November 15, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager FY 2002 Annual Plan - Amendment 2 Housing and Community Development Director David Harris and the Community Development Advisory Commission are recommending adoption of Amendment No. 2 to the Fiscal Year 2002 Annual Action Plan. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Director CITY OF DUBUQUE, IOWA MEMORANDUM November 9, 2001 TO: FROM: Michael C. Van Milligen, City Manager David 'Harris, Housing and Community Development Director SUBJECT: FY 2002 Annual Plan - Amendment 2 INTRODUCTION This memorandum presents for City Council consideration proposed changes in the City's Community Development Block Grant (CDBG) FY 2002 Annual Plan. These changes provide for funding for the YES program at Four Mounds, software for Housing Services and additional funding for the Homeowner Rehab program. BACKGROUND Federal rules require that each year a city must prepare and file an Annual Action Plan prior to receipt of its CDBG entitlement. The Annual Plan is adopted following a public participation process that includes a published notice, a public comment period, and a public headng. A city must follow its adopted annual plan as it expends entitlement funds. The City's current plan was adopted with the budget in March, and amended in October. The City of Dubuque has been allocated CDBG funds that have been programmed for specific uses as per the adopted Annual Plan. The Community Development Advisory Commission reviewed amendments to the FY 2002 Annual Plan on October 11th and at a public hearing on Thursday, November 8, 2001. There were no public comments regarding the request. The Commission voted to approve the proposed amendments and recommend City Council approval. DISCUSSION The proposed amendments to the Annual Action Plan include the following: 1) establishes funding for the Youth Empowerment Services (Y.E.S.) program at Four Mounds for $27,000; 2) increases funding for Housing Rehabilitation Services by $9,200 for tracking software; and 3) transfers $24,000 from Rental Unit Rehab to Homeowner Rehab for sewer connection loans. The Citizen Participation Plan states a substantial amendment is any change in the use of CDBG funds from one eligible activity to another in excess of $25,000 in one program year. Since the funds requested for the Housing Rehab software and the transfer of funds from one activity to another are in amounts less than $25,000, these proposed amendments are non-substantial and can be adopted by resolution of the City Council following review and recommendation of the Community Development Commission. The funding for the YES program is not currently in the FY 2002 Annual Plan and therefore is a substantial amendment, requiring a public hearing by the Commission. A notice regarding the proposed amendment for the YES program was published 30 days prior to the public hearing. This notice advised the public of the general nature of the amendment, invited their comments and notified them of a proposed public hearing. This initiated a 30-day public comment period on the proposed amendment as provided in the Citizen Participation Plan. The Community Development Advisory Commission reviewed the proposed amendments on Thursday, October 11 and November 8, 2001. Following the public hearing and review, the Commission voted to approve the proposed amendments and recommend City Council approval. RECOMMENDATION I recommend that the City Council approve the above-described Amendment 2 to the City's FY 2002 (Program Year 2001) Annual Plan for the use of CDBG funds. These amendments will allow programs that will respond to citizen's needs and facilitate the timely expenditure of funds, as required by HUD. ACTION STEP The Action Step is for the City Council to adopt the attached resolution, Prepared by Aggie Kramer, Community Development Specialist F:~USERS~AKRAMER\CDBG~nnualPlan~Amendments~,mend 2\02amd2,mvm,d0c RESOLUTION NO. 489-01 RESOLUTION APPROVING AMENDMENT 2 TO THE FISCAL YEAR 2002 (PROGRAM YEAR 2001) ANNUAL ACTION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. Whereas, the City of Dubuque prepared and filed an Annual Action Plan for Fiscal Year 2002; and Whereas, the City of Dubuque now desires to amend said Annual Plan as per the attached Exhibit A; and Whereas, said amendment for the Youth Empowerment Services program is a substantial amendment as provided in the City's Citizen Participation Plan and must therefore be approved by resolution of the City Council after a public hearing by the Community Development Advisory Commission; and Whereas, the City advertised a public comment period beginning October 3, 2001; and Whereas, the Community Development Advisory Commission reviewed the proposed amendment at a public hearing on November 8, 2001, and has voted to approve said amendment and to recommend approval by the City Council; and Whereas, said amendment for Housing Rehab software and Homeowner Rehab are non-substantial amendments as provided in the City's Citizen Participation Plan and must therefore be approved by resolution of the City Council after review by the Community Development Advisory Commission; and Whereas, the Community Development Advisory Commission reviewed these proposed amendments on October 11 and November 8, 2001, and has voted to approve said amendments and to recommend approval by the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That Amendment 2 to the Fiscal Year 2002 (Program Year 2001) Annual Action Plan for the Community Development Block Grant Program hereto attached as Exhibit A is hereby approved. Section 3. That the City Manager is hereby authorized and directed to submit a copy of this resolution to the U. S. Department of Housing and Urban Development. Passed, approved and adopted this 19th day of November, 2001. /s/ Terance M. Duggan, Mayor /s/ Jeanne F. Schneider, City Clerk F:\USERS~AKRAMER~CDBG~AnnualPlan~Amendments~Amend 2~amend2.res.doc Exhibit A Amendment No 2 Community Development Block Grant (CDBG) FY 2002 Annual Action Plan Amendment Program Year 2001 July 1, 2001 to June 30, 2002 City of Dubuque, Iowa B-01-MC-19-004 Proposed Activities/Costs Activity Name National Objective Implementing Original Agency Statement Amendment Change Youth Empowerment Low/Moderate Four Services (YES) program Income clientele Mounds HousIng Rehabilitation Low/Moderate Services and Staff Income housing Contingency Rental Unit Low/Moderate Rehabilitation Income housing Homeowner Low/Moderate Rehab Program Income housing Housing and Commm~y Development Housing end Community Development Housing end Community Development $ 0 $ 27,000 + $27,000 $216,113 $225,313 + $9,200 $123,544 $ 87,344 -$36"200 $309,530 $285,530 - $24,000 $676,893 $700,893 + $24,000 This amendment will 1) reallocate $27,000 of contingency funds for the Youth Empowerment Services (YES) program; 2) reallocate $9.200 of contingency funds for the sottwara for Housing Rehabilitation; 3 ) l~ausfor $24,000 from the Rental Unit Rehabilitation program to the Homeowner Rehab Program. F :\USERSkMGRAMERkCDB G~mnualPla nk~aendmentsh~te nd 2kExhA01 amtt2 .doc