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CDBG Agreement FY 2009Dubuque THE CTTY OF ~~ ~~_ DUB E A~~ t r Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: FY 2009 Community Development Block Grant (CDBG) Agreement DATE: July 15, 2008 Housing and Community Development Department Director David Harris is recommending approval of the Community Development Block Grant Agreement with the U.S. Department of Housing and Urban Development in the amount of $1,209,427. I concur with the recommendation and respectfully request Mayor and City Council approval. C Mich el C. Van Milligen MCVM/jh Attachment cc: .Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director THE CITY OF Dubuque -~.. DUB E ~' t - Masterpiece on the Mississippi 2007 TO: Michae~ n Milligen, City Manager FROM: David Har is, Housing and Community Development Department SUBJECT: FY 2009 Community Development Block Grant (CDBG) Agreement DATE: July 8, 2008 INTRODUCTION This memorandum requests City Council adoption of a resolution authorizing the Mayorto sign a Community Development Block Grant (CDBG) Agreement with the U.S. Department of Housing and Urban Development (HUD) in the amount of $1,209,427 for the program year beginning July 1, 2008 and ending June 30, 2009. DISCUSSION As a CDBG entitlement community, the City of Dubuque is eligible to receive annual funding for carrying out housing and community development activities. Before it may receive these funds it must submit a plan for the use of funds and sign an annual grant agreement. On March 13, 2008 the City Council approved a proposed FY 2009 Annual Action Plan that had been recommended by the Community Development Advisory Commission. Subsequently, HUD notified the City that the anticipated CDBG allocation has been reduced to $1,209,501. The amended Plan was approved by the Commission on March 26th and adopted by the City Council on April 21, 2008 by Resolution 117-2008. The attached letter from HUD informs the City that its FY 2009 Annual Action Plan has been reviewed and a grant of $1,209,427 approved. A Funding Approval/Agreement is included for execution by the City. To complete the annual application process, the City Council must now approve execution of the grant agreement as provided by the attached resolution. An amendment to the Annual Plan is currently under consideration by the Community Development Advisory Commission to correct the overage in the mandated public service and administrative caps. RECOMMENDATION I recommend that the City Council approve the attached resolution authorizing execution of the grant agreement with the U.S. Department of Housing and Urban Development. This will allow the City to begin expending funds for programs included in our FY 2009 Annual Plan for the program year, which began July 1st. Prepared by Aggie Tauke, Community Development Specialist F:\Users\.ATAUKE\CDBG\AnnualPlan\GrantAgree. mem. doc RESOLUTION N0. 226 -2008 RESOLUTION AUTHORIZING EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT WITH THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. Whereas, under provisions of Title I of Housing and Community Development Act of 1974, as amended, the City of Dubuque prepared and submitted an Annual Action Plan for a Community Development Block Grant; and Whereas, the submission has been approved. by the U.S. Department of Housing and Urban Development in the amount of $1,209,427 for a twelve month program year commencing July 1, 2008 and ending June 30, 2009; and Whereas, a grant agreement covering the activities proposed to be carried out with the Community Development Block Grant funds has been transmitted to the City of Dubuque by the U. S. Department of Housing and Urban Development. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Funding Approval/Agreement, authorized by the U.S. Department of Housing and Urban Development for July 1, 2008 for a Community Development Block Grant to the City of Dubuque in the amount of $1,209,427 and identified as Grant Number B-08-MC-19- 0004 is hereby accepted. Section 2. That the Mayor of the City of Dubuque be and he is hereby authorized and directed to execute said Agreement on behalf of the City of Dubuque, Iowa. Passed, approved and adopted this 21st day of July 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk P.~pnENT O,r ~e* 0~~~~~~ * N~ a~ II~II~II ~~z 9eAN DEVE~'pQ Honorable Roy Buol Mayor of Dubuque City Hall 50 West 13~' Street Dubuque, IA 52001-4864 Dear Mayor Buol: U.S. Department of Housing and Urban Development Nebraska State Office Executive Tower Centre 10909 Mill Valley Road Omaha, Nebraska 68154-3955 July 2, 2008 C7 a~ C7``= ~ ~~ `-~ ~'_ ~ .,_a ' ~-7 ,1 f_ (i~ '_J ~, ~ % U ~ c~ w ~ This is to inform you that a review of your fiscal year 2008 Consolidated Plan Annual Action Plan has been completed. The grant assistance you are receiving includes Community Development Block Grant (CDBG) funds in the amount of $1,209,427. Enclosed are the Grant Agreements and Funding Approvals (three copies for each program), which constitute the contract between the Department of Housing and Urban Development and the City of Dubuque. In order to establish a line of credit for these grant funds, you should execute and return two copies of the Grant Agreement. Retain one copy of the Grant Agreement for your files. If there is a need to establish or change the depository account to which these grant funds are to be wired, a Direct Deposit Sign- Up Form (SF-1199A) must be completed by you and your financial institution and mailed to this office. You are reminded that certain activities are subject to the provisions of 24 CFR Part 58 (Environmental Review Procedures for the CDBG, HOME and ESG Programs). Funds for such activities may not be obligated or expended unless the release of funds has been approved in writing by HUD. A request for the release of funds must be accompanied by an environmental certification. The special condition in your Grant Agreement and Funding Approval concerning the review procedures under Executive Order (E.O.) 12372, Intergovernmental Review of Federal Programs, and HUD's implementing regulations at 24 CFR Part 52 restricts the obligation or expenditure of funds for the planning or construction of water or sewer facilities until the completion of the review process and receipt of written notification of release of funds from HUD. Since you have not submitted your final statement for review under E.O. 12372, we assume you do not propose to use funds for activities subject to review. However, the condition requires that in the event you amend or otherwise revise your final statement to use funds for the planning or construction of water or sewer facilities, you must receive written release of funds from HUD before obligating or expending funds for such activities. You are encouraged to continue to vigorously promote full partnerships between the City of Dubuque and its non-profit service providers, neighborhood organizations, the economic community and private citizens as you implement your Consolidated Plan. In the process of transforming plan elements into projects, the quality of success will depend in large part on the closeness of cooperation among all the Consolidated Plan partners. We offer our continued support and technical assistance during the coming year to help forward the objectives of the Consolidated Plan. In reviewing the city's activities for CDBG program year 2008, please be advised that the city has exceeded it 15 percent Public Service Cap. The regulations at 24 CFR 570.201 (e) (1) state "The amount of CDBG funds used for Public services shall not exceed 15 percent of each grant, except that for entitlement grants made under subpart D of the part, the amount shall not exceed 15 percent of the grant plus 15 percent of program income, as defined in §570.500(a)." Please remember the city may not obligate more than 15 percent of its entitlement grant plus the pervious years program income for public service activities. In reviewing activities for Administrative cost, please be advised that the city has exceeded the 20 percent cap allowed for the CDBG program. Costs that are charged to the administrative costs and to planning and capacity building per §570.205 and 206 are subject to a statutory limitation that not more than 20 percent of grant funds plus program income may be used for planning and administration. Please remember the city may not obligate more than 20 percent of its entitlement grant plus program income for planning and administration activities. If you have any questions regarding the information in this letter, please contact Ms. Kim Radice, Community Planning and Development Representative, at (402) 492-3190. Sincerely, ~°~ ~°~~~ ~~ Patricia M. McCauley Director Community Planning and Development Division Enclosures cc: Mr. David Harris Mr. Dave Heiar -Funding Approval/Agreement Title I of the Housing and Community Development Act (Public Law 930383) HI-00515R of 20515R 1. Name of Grantee (as shown in item 5 of Standard Form 424) of Dubuque, Iowa City Hall 50 West 13u' Street Dubuque, IA 52001 in item 5 of Standard Form 3. Grantee's 9-digit Tax ID Number 42-6004596 5a. ProjectlGrant No. 1 B-08-MC-19-0004 5b. Projecf/Grant No. 2 5c. 4. Date use of funds may begin (mmlddlyyyy) 07/01/2008 $1,209,427 6c. Amount Approved Grant Agreement: This Grant Agreement between the Department of Housing and Urban Development (HUD) and the above named Grantee is made pursuant to the authority of Title I of the Housing and Community Development Act of 1974, as amended, (42 USC 5301 et seq.). The Grantee's submissions for Title I assistance, the HUD regulations at 24 CFR Part 570 (as now in effect and as may be amended from time to time), and this Funding Approval, including any special conditions, constitute part of the Agreement. Subject to the provisions of this Grant Agreement, HUD will make the funding assistance specified here available to the Grantee upon execution of the Agreement by the parties. The funding assistance specified in the Funding Approval may be used to pay costs incurred after the date specified in item 4 above provided the activities to which such costs are related are carried out in compliance with all applicable requirements. Pre-agreement costs may not be paid with funding assistance specified here unless they are authorized in HUD regulations or approved by waiver and listed in the special conditions to the Funding Approval. The Grantee agrees to assume all of the responsibilities for environmental review, decision making, and actions, as specified and required in regulations issued by the Secretary pursuant to Section 104(8) of Title I and published in 24 CFR Part 58. The Grantee further acknowledges its responsibility for adherence to the Agreement by sub-recipient entities to which it makes funding assistance hereunder available. Patricia M. McCauley (By Name) U.S. Department of Housing and Urban Development Office of Community Planning and Development Community Development Block Grant Program of Dubuque Title Title Director, Community Planning and Development Division Honorable Roy D. Buol, Mayor of Dubuque Signature ~ Date (mmlddlyyyy) Signature Date (mmldd/yyyy) ~ 07/02/2008 7. Category of Title I Assistance for this Funding Action 8. Special Conditions 9a. Date HUD Received Submission 10. check one (check only one) (check one) (mmlddlyyyy) 04/28/2008 ®a. Orig. Funding ® a. Entitlement, Sec 106(b) ^ None 9b. Date Grantee Notified Approval ^ b. State-Administered, Sec 106(d)(1) ®Attached (mmlddlyyyy) 07/02/2008 ^ b. Amendment Amendment Number ^ c. HUD-Administered Small Cities, Sec 106(d)(2)(B) 9c. Date of Start of Program Year ^ d. Indian CDBG Programs, Sec 106(a)(1) (mmlddlyyyy) 07/01/2008 ^ e. Surplus Urban Renewal Funds, Sec 112(b) 11. Amount of Community Development ^ f. Special Purpose Grants, Sec 107 Block Grant FY (2008) FY ( ) FY ( ) ^ g. Loan Guarantee, Sec 108 a. Funds Reserved far this Grantee $1,209,427 b. Funds now being Approved $1,209,427 c. Reservation to be Cancelled 11 a minus 11 b 12a. Amount of Loan Guarantee Commitment now being Aooroved 12b. Name and complete Add ress of Public Agency Loan Guarantee Acceptance Provisions for Designated Agencies: The public agency hereby accepts the Grant Agreement executed by the Department of Housing and Urban Development on the above date with respect to the above grant number(s) as Grantee designated to receive loan guarantee assistance, and agrees to comply with the terms and conditions of the Agreement, applicable regulations, and other requirements of HUD now or hereafter in effect, pertaining to the assistance provided it. Public Agency Signature HUD Accounting use Only Effective Date Batch TAC Program Y A Reg Area Document No. Project Number Category Amount (mmlddlyyyy) ~~~ oom~~~000 0 0 0 0 Project Number Project Number Amount Amount veritieo ey 24 CFR 570 form HU E.O. 12372 -SPECIAL CONTRACT CONDITION Notwithstanding any other provision of this agreement, no funds provided under this agreement may be obligated or expended for the planning or construction of water or sewer facilities until receipt of written notification from HUD of the release of funds on completion of the review procedures required under Executive Order (E. O.) 12372, Intergovernmental Review of Federal Programs, and HUD's implementing regulations at 24 CFR Part 52. The recipient shall also complete the review procedures required under E. O. 12372 and 24 CFR Part 52 and receive written notification from HUD of the release of funds before obligating or expending any funds provided under this agreement for any new or revised activity for the planning or construction of water or sewer facilities not previously reviewed under E. O. 12372 and implementing regulations.