CDBG FY 2004-5 Certifi of fundsTO:The Honorable Mayor and City Council Members
FROM:Michael C. Van Milligen, City Manager
MEMORANDUM
March 31,2003
SUBJECT: FY 2004/2005 Certification of Overall Benefit
The Community Development Block Grant (CDBG) regulations require that at least 70%
of CDBG funds be expended during a one, two or three year period for activities
benefiting Iow/moderate income persons. This is a statutory requirement and must be
met. Currently we are certified for a 3-year period from FY 2001 through FY 2003.
A three-year certification regarding overall benefit was submitted with the Consolidated
Plan in May 2000 for Fiscal Years 2001 through 2003. The City is certified for a one-
year period beginning July 1 for FY 2004. Housing and Community Development
Director David Harris is recommending amending the Consolidated Plan to certify
overall benefit for a two-year period, from FY 2004 to and including FY 2005. This will
allow the 70% overall benefit to be averaged over the two year period and allow
disbursement of the loan to the Brewery after July 1.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 27, 2003
TO:Michael Van Milligen, City Manager
FROM:David Harris, Housing and Community Development Department
SUBJECT:FY 2004/2005 Certification of Overall Benefit
INTRODUCTION
This memorandum presents for City Council consideration a proposed change in the
certification period for overall benefit of Community Development Block Grant (CDBG)
funds as per the Consolidated Plan. These changes provide for a two-year certification
period for FY 2004 and FY 2005.
DISCUSSION
The Community Development Block Grant (CDBG) regulations require that at least
70% of CDBG funds be expended during a one, two or three year period for activities
benefiting Iow/moderate income persons. This is a statutory requirement and must be
met. Currently we are certified for a 3-year period from FY 2001 through FY 2003.
Projects that ara for the removal of slum and blight are not considered as part of the
70% Iow/moderate income benefit. The $500,000 Commercial/Industrial Building
Rehab loan for the rehabilitation of the Brewery is a project that affects slum and blight.
The funds were to be expended in FY 2003 but are now anticipated for after July 1,
2003. If the expenditures occur in FY 2004, we are currently only certified for a one
year period and the total loan amount will reduce the Iow/moderate income benefit to
below 70%.
A three-year certification regarding overall benefit was submitted with the Consolidated
Plan in May 2000 for Fiscal Years 2001 through 2003. The City is certified for a one-
year period beginning July 1 for FY 2004. We are proposing to amend the
Consolidated Plan to certify overall benefit for a two-year period, from FY 2004 to and
including FY 2005. This will allow the 70% overall benefit to be averaged over the two
year period and allow disbursement of the loan to the Brewery after July 1.
The Citizen Participation Plan states an amendment to the Consolidated Plan is
required whenever there is a change in the method of distribution of CDBG funds. This
is a non-substantial amendment and can be adopted by resolution of the City Council
following review and recommendation of the Community Development Advisory
Commission.
On March 20 2003, the Community Development Advisory Commission voted to amend
the Consolidated Plan to extend the overall benefit so the aggregate use of CDBG
funds for the FY 2004 and FY 2005 Annual Plans (Program years 2003 and 2004) will
principally benefit at least 70 percent of Iow/moderate income persons. They
recommend the City Council approve the amendment and forward to HUD.
RECOMMENDATION
I recommend that the City Council approve the above-described amendment to the
City's Consolidated Plan for overall benefit of CDBG funds. These changes will allow a
two-year certification period for expending 70% of CDBG funds for activities benefiting
Iow/moderate income persons.
ACTION STEP
The Action Step is for the City Council to adopt the attached resolution.
Praparad by Aggie Kramer, Community Development Specialist
F:\Users~AKRAMER\CDBG~Annua]Plan~yr Cerafication.mvm.doc
RESOLUTION NO. 99-03
A RESOLUTION AMENDING THE CONSOLIDATED PLAN FOR 2001-2006 TO
EXTEND THE OVERALL BENEFIT FOR THE AGGREGATE USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR
FISCAL YEAR 2004 AND FISCAL YEAR 2005 ANNUAL PLANS (PROGRAM
YEARS 2003 AND 2004)
Whereas, the U.S. Department of Housing and Urban Development (HUD)
requires the City Of Dubuque to prepare and submit a Consolidated Plan to plan for
the coordinated use of federal, state, and local funds to assist lower income residents
with housing, jobs and services; and
Whereas, the City of Dubuque adopted a Consolidated Plan for Fiscal Years
2001 through 2006 on May 1, 2000 by Resolution No. 185-2000; and
Whereas, a three-year certification regarding overall benefit was submitted with
the Consolidated Plan for Fiscal Years 2001 through 2003 (Program Years 2000
through 2002) and one year certification for the remaining two years; and
Whereas, the City now propose to extend the overall benefit so that the
aggregate use of CDBG funds for Fiscal Year 2004 and Fiscal Year 2005 Annual Plans
(Program years 2003 and 2004) will principally benefit at least 70 percent
Iow/moderate income persons.
Whereas, said amendment is a non-substantial amendment 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 the
proposed amendment on March 20, 2003, and has voted to approve said amendment
and recommend approval by the City Council.
NOW, THEREFORE, BE ~RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Consolidated Plan is hereby amended to extend the overall
benefit so that the aggregate use of Community Development Block Grant funds for
Fiscal Year 2004 and Fiscal Year 2005 Annual Plans (Program Years 2003 and 2004)
will principally benefit at least 70 percent Iow/moderate income persons.
Section 2. That the City Manager is hereby authorized and directed to submit to
the U.S. Department of Housing and Development the two-year certification with the
Fiscal Year 2004 Annual Action Plan (Program Year 2003) for the use of Community
Development Block Grant funds.
Passed, approved and adopted this 7th day of April 2003.
Attest:
Jeanne F. Schneider, City Clerk
Terrance M. Duggan, Mayor
F:\UsersV~KRAMER'tCDBG~.onualPlan~2 yr certification Res,doc