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Community Development Block Grant (CDBG) FY19 Amendment No. 2 Copyrighted February 5, 2018 City of Dubuque Consent Items # 11. ITEM TITLE: Community Development Block Grant (CDBG) Fiscal Year 2018 Annual Action Plan Amendment No. 2 SUMMARY: City Manager recommending approval of the FY2018 Annual Action Plan—Amendment 2 for the Community Development Block Grant(CDBG) Program. RESOLUTION Amending the Fiscal Year 2018 (Program Year 2017) Community Development Block Grant(CDBG) Annual Action Plan SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type FY18 CDBG Amendment 2-NNM Memo City Manager Memo Staff Memo Staff Memo Exhibit A-Amendment 2 Supporting Documentation Resolution Resolutions THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Community Development Block Grant FY18 Amendment 2 DATE: February 1 , 2018 Housing & Community Development Director Alvin Nash recommends City Council approval of the FY 2018 Annual Action Plan — Amendment 2 for the Community Development Block Grant (CDBG) Program. This non-substantial amendment reallocates funds from Homeowner Rehabilitation to Lead Hazard Control activities. The Community Development Advisory Commission reviewed and recommended adoption of Amendment 2 at the December 20, 2017 public meeting. I concur with the recommendation and respectfully request Mayor and City Council approval. �� Mic ael C. Van Milligen �� MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alvin Nash, Housing & Community Development Director THE CITY OF DUbUc1Ue DuB E �'��' I � � I� Masterpiece on the Mississippi Z�,.Zo,2.Zo„ TO: Mike Van Milligen, City Manager FROM: Alvin Nash, Housing & Community Development Director DATE: February 1, 2018 RE: Community Development Block Grant FY18 Amendment 2 Introduction The purpose of this memorandum is to request City Council's approval of the attached resolution approving FY 2018 Annual Action Plan —Amendment 2 for the Community Development Block Grant (CDBG) program. This non-substantial amendment reallocates funds from Homeowner Rehabilitation to Lead Hazard Control Activities. Background Federal regulations require each year a city must prepare and file an Annual 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 hearing. A city must follow its adopted plan as it expends entitlement funds. If its revenues or activities change, the city must amend. This requirement applies to plans for previous years as well as the current year. The City of Dubuque has been allocated CDBG funds that have been programmed for specific uses as per the adopted Annual Plan for Fiscal Year 2018. When needs change during the year, the City must amend the plan to reflect the current needs. Discussion The proposed amendment to the FY 2018 plan moves funding from Homeowner Rehabilitation to Lead Hazard Control activities. Funds in the Lead Hazard Control activity can be used by all the housing rehabilitation programs the Housing & Community Development department offers, including: Homeowner Rehabilitation, Rental Rehabilitation, Lead & Healthy Homes, Purchase Rehab Resale, and Bee Branch Healthy Homes. Due to a large number of homes in Dubuque having lead paint hazards, the expense associated with remediation of the lead hazards is often quite high, leaving very few funds to address other code hazards 1 or to bring the property to Rehabilitation Standards. The Lead Hazard Control activity provides forgivable loans to income eligible households to address lead hazards. By forgiving the lead hazard portion of the funding a household receives, we are able to bring the housing unit to full Rehabilitation Standards without financially burdening the occupants. These changes will allow us to respond to the housing needs of the community, facilitate the timely use of funds as required by HUD. The existing FY 2018 Annual Plan as amended allocated CDBG funds of $170,234 for Homeowner Rehabilitation activities and $128,434. The amendment moves $100,000 from Homeowner Rehabilitation activity to the Lead Hazard Control Activity. $128,434 of the CDBG allocated to Lead Hazard Control is reserved as a match for the Lead and Healthy Homes Grant. The amendment provides $100,000 in funding to address lead hazards for any income eligible household, regardless of the specific housing rehabilitation program. Amendment 2 impacts the Housing Development Programs section of the Annual Action Plan, as amended. Because the amendment does not increase or decrease funding for the plan and only moves funding between like activities, this is a non-substantial amendment. Recommended Amendment 2 Proposed FY2018CityBudget Amendment1 NonSub4antial Amendment2 Housing Development Programs: Accomplishments Approved Plan FY 2018 Plan Amendment FY 2018 Plan FifStTimeHomebuyerProgram 12households 5Q000 75,000 75,000 Historic Preservation Rehab Grant 2 households 1q000 1q000 HomeoWner Rehab(Small& Large) 11 housing units 159,234 17Q234 (i0Q000) 7Q234 Homeowner Rehab Lump Sum 288,219 288,219 HOUsing COde EnfOfCement 350 housing units 62,098 62,398 62,398 Housing Rehabilitation SefVices and Staff Administration 34Q176 34Q176 34q176 Lead Hazard Control ActiVlties 2 rental/1 owner 85,200 128,434 10q000 22Q434 Purchase/Rehab/Resale 1 housing unit 7Q000 412,338 412,338 Rental Unit Rehabilitation 10 housing units 119,885 245,609 245,609 Bee Branch Healthy Homes Lead Waterline&Sewer Repair/Replacement s households aa,22a aa,22a Housing Totals 886,593 1,776,632 0 1,776,632 Commission Action The Community Development Advisory Commission reviewed and recommended adoption of Amendment 2 at the December 20, 2017 public meeting. No public was present for comment. The commission commented the forgivable funds associated with the Lead Hazard Reduction activity was appropriate and beneficial to households and public health because it addresses health hazards and removes barriers from households unable or unwilling to take a loan to address lead hazards. 2 Requested Action The requested action is for the Council to approve the Mayor's execution of the attached resolution, approving the FY 2018 Annual Action Plan Amendment 2. Prepared by Erica Haugen, Community Development Block Grant Attached: Exhibit A, FY18 CDBG Amendment 2 Cc: Jennifer Larson, Budget Director Kris Neyen, Rehabilitation Supervisor Lisa Barton, Community Development Block Grant Specialist Kimberly Glaser, Lead & Healthy Homes Program Manager Sharon Gaul, Resiliency Coordinator John Tharp, Grant Administrator 3 COMMUNITV DEVELOPMENT BLOCK 6RANT FV2018 CDB6 ANNUALACTION PLAN-Amendment2 FORTHE PERIOD ENDIN6June3Q2018 ExhibitA AdoptedCityBudgM AmendedCityBudgM Amendment2 PR0.IECTED SOURCES FY 2018 FY 2018 FY 2018 Entitlement 954,011 968,235 968,235 Program Income 531,728 531,728 531,728 PriorYear(Pl�Committed and Carryover 1,337,439 1,337,439 Unallocated Funds 3Q000 3Q000 Total Sources 1,485,739 2,867,402 2,867,402 Recommentletl Amentlment 2 Proposetl FV 2018 City Butlget Amentlment 1 Non-Substantial Amentlment 2 Housing Development P�og�ams: Accomplishments Approvetl Plan FV 2018 Plan Amentlment FV 2018 Plan First Time Homebuyer Prog2m 12 householtls 50,000 75,000 75,000 Historic Preservation Rehab Grant 2 househoms 10,000 10,000 Homeowner Rehab(Small&Large 11 housing units 159,234 170,234 (100,000) 70,234 Homeowner Rehab Lump Sum 288,219 288,219 HOusing COde EnfOfCement 350 housing uni�s 62,098 62,398 62,398 Housing Rehabilitation Services and Sta 340,176 340,176 340,176 Housing Trust 0 0 Lead Hazard Control Activities 2 rental/1 owner 85,200 128,434 100,000 228,434 Purchase/Rehab/Resale 1 housing unit 70,000 412,338 412,338 Rental Unit Rehabilitati0n 10 housing uni�s 119,885 245,609 245,609 Bee Branch Healthy Homes Lead Waterline&Sewe Repair/Replacemen 6 householtls qq,22q qq,22q HOUsing TOfals 886,593 1,776,632 0 1,776,632 Economic Development Programs: E.D.Financial Assistance Program - 0 181ow/motljobs Harvest Kitchen&Bar createtl 0 MiCfOenteryflse AssistanCe PfOgfam 5 businesses 149,970 149,970 ECOnOmIC DeVelOpmenf TOfals 149,970 149,970 Neighborhood and Community Development Programs ACCessible Cufb Ramps Ramps 12,600 63,635 63,635 Dubuque Dispute Resolution Cente Canceletl Activity 0 0 Information&Referral- Project Concern 3000 people 0 0 Multi-CuINfalFamilyCente accessibili�y/LMA (76,259) (76,259) Neighborhood Infrastructure Improvement sitlewalks,60 sireet 93,400 428,576 428,576 Zoning Inspection/Enforcemen 45 housing units 8,710 17,420 17,420 Neighborhood Recreation Program 5730 persons 136,228 136,528 136,528 Neighborhood Support Grants 2000 people 14,560 28,931 28,931 Four Mounds HEART 10 people 10,000 10,000 10,000 Opening Doors 225 people 0 0 SeniOfCentef 600people 18,408 22,958 22,958 Washington Tool Library 450 people 15,790 17,640 17,640 PUrohase Of Servlces 100 people 19,579 21,500 21,500 NelghbOfhOOd&COmm.DeVelOp.TOfals 329,275 67Q929 0 67Q929 Administration Neighborhood Development Services and Staff 62,122 62,122 62,122 HousingAdministration 75,224 75,224 75,224 CDBG Admin.Services and Staff 132,525 132,525 132,525 AdminlsffafiOn TOfals 269,871 269,871 0 269,871 Contin enc 0 0 TOTAL CDBG 1,485,739 2,867,402 0 2,867,402 COMMUNITY DEVELOPMENT BLOCK GRANT - FY 2018 ANNUAL ACTION PLAN: CAPS 20 % ADMINISTRATIVE CAP 15 % PUBLIC SERVICE CAP Estimated FY 18 CDBG Allocation 968,235 968,235 FY 18 CDBG Allocation Current Year Program Income 531.728 476,419 Previous Year Program Income Total Available 1,499,963 1,444,654 Total Available Cap% 20% 15% Public Service Cap% Maximum allowed 299,993 216,698 Maximum allowed ADMIN PUB SERVICE UNCAPPED FY18 AP FY18 AP FY18 AP First Time Homebuyer Program 75,000 Historic Preservation Rehab Gran 10,000 Homeowner Rehab Program 70,234 Homeowner Rehab Lump Sum 288,219 Housing Administration 75,224 Housing Code Enforcemen 62,398 Housing Rehabilitation Services and Sta 340,176 Lead Hazard Control Activitie 228,434 Purchase/Rehab/Resale 412,338 Rental Unit Rehabilitation 245,609 Bee Branch Healthy Homes Water Line&Sewe 44,224 Microenterprise Assistance Program 149,970 Accessible Curb Ramps 63,635 Information& Referral- Project Concern 0 Neighborhood Development Services and Staff 62,122 Neighborhood Infrastrudure Improvement 428,576 Neighborhood Recreation Program 136,528 Neighborhood Support Grant 28,931 Purchase of Services 21,500 Four Mounds HEART 10,000 Senior Center 22,958 Washington Tool Library 17,640 Zoning Inspection/Enforcemen 17,420 CDBG Admin.Services and Staff 132,525 TOTALS 269,871 237,557 2,359,974 Subtract Previous Year Unspent Public Service Obligations (21,071) TOTAL PROPOSED FOR PUBLIC SERVICE 216,486 OVER(UNDER)Maximum Cap (30,122) (212) RESOLUTION NO. 23-18 A RESOLUTION AMENDING THE FISCAL YEAR 2018 (PROGRAM YEAR 2017) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN. Whereas, the City of Dubuque has prepared and filed a Fiscal Year 2018 (Program Year 2017) Community Development Block Grant Annual Action Plan addressing housing and non -housing needs in the community; and Whereas, the City of Dubuque now desires to amend said Annual Plan by re -allocating Housing Development Program funding from the Homeowner Rehabilitation activity to the Lead Hazard Reduction Activity as per the attached Exhibit A; and, Whereas, said amendment is a non -substantial amendment as provide in the City's Citizen Participation Plan and therefore must be approved by resolution of the City Council after recommendation by the Community Development Advisory Commission; and Whereas, the Community Development Advisory Commission met on December 20th, 2017, and voted to approve said amendment 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 the Community Development Block Grant Fiscal Year 2018 (Program Year 2017) Annual Action Plan as amended, attached hereto as Exhibit A and by this reference made a part hereof, is hereby adopted for inclusion in the Fiscal Year 2018 City Budget on March 7, 2018. Section 2. That the Community Development Block Grant Fiscal Year 2018 (Program Year 2017) Annual Action Plan as amended is in Exhibit A is hereby approved. Section 3. The City Manager is hereby authorized and directed to prepare and submit a copy of this resolution and amended Plan to the United States Department of Housing and Urban Development. Passed, approved and adopted this 5th day of February, 2018. ,r1 oy D. Buol, Mayor Attest: Kev,'n S. Firnstahl, city Clerk